If you are a real estate investor looking for financing for your next project or portfolio addition, you have many options to choose from when considering real estate investment loans. However – when it comes to financing real estate investments in Florida, the type of investment loan can make or break your return. As such it’s absolutely vital to understand the requirements of each type of loan and how they align with your real estate investment thesis before securing a mortgage.
The most popular type of loan for real estate investors in Florida is the conventional mortgage loan. While many know that these loans are available for primary residences, few realize that conventional loans can be used on certain types of investment properties. They’re common, easy and offered by most lenders.
Another option for real estate investors in Florida is a hard money loan. This type of loan is secured by the property being purchased. Hard money loans are usually given by private individuals or investment groups, rather than banks.
Hard money loans are often used to purchase property for investment purposes. The loan terms may be shorter than traditional bank loans, and the interest rates may be higher. But hard money loans can be a good option for people who don’t have time to wait for a traditional bank loan and who want a more streamlined approach to making a purchase with fewer documentation requirements.
A DSCR loan, also known as a debt service coverage ratio loan, is a type of loan that verifies and approves the loan based on the rental income of real estate investment in lieu verifying the borrower income.
This type of loan can be beneficial for real estate investors who may not qualify for a traditional loan due to their income. With a DSCR loan, borrowers can qualify for a loan based on the property’s cash flow, instead of their income. This can make it easier to obtain financing for investment properties in Florida.
For more information on Investment Loans and how to obtain one, please contact a loan officer from The Wholesale Mortgage Firm today. We are here to help you every step of the way!
* Down Payment Requirement Can be 3% in some scenarios for First Time Homebuyers
** $0 PMI Payment with less than 20% down payment limited to select scenarios and mortgage lenders
Getting a mortgage can be a challenging and time-consuming process… but we’re here to help you.
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