Investment properties can make you a substantial amount of money. If you buy a rental property at the right price, and you get the best financing for it, it can cash flow very fast.
Investment property loan rates tend to be higher than conventional mortgage rates by 0.5% to 0.75% The rental property mortgage rates may vary based on the specifics of the loan scenario such as length of loan, loan to value (LTV), condition and location of property and overall perceived risk of the investment. Many conventional lenders solely focus on owner-occupied home mortgages and do not provide financing for investment property.
Getting a low mortgage rate on a rental property is a bit harder than for a primary residence because lenders charge more for “non-owner occupied” properties.
With Onyx our rates for rental property loans start as low as 4.99%. That said, your final interest rate for an investment property loan will depend on the type of property you want to acquire, your creditworthiness, and how much you put down.
Hard money lenders such as Onyx, are generally a better source of loans for investment properties as we primarily work with real estate investors and we better understand their needs. We are amongst the most experienced and reliable hard money lenders that will also be able to approve the borrower and fund the loan much faster than a conventional lender such as a bank or credit union.
Speak to one of our loan advisors and we will help you find the best rates for you.
What Do I Need To Qualify?
The first thing you would need to get a loan for investment properties is to have at least 20% to 40% down in case you want to purchase, or substantial equity in the property if you’re looking for a cash out refinance.
The higher the down payment or property equity you have, the more likely you will be approved.
We will also look at the borrower’s experience in real estate. If this is the first time that the borrower is going to finance an investment real estate deal, he or she might face more scrutiny than a borrower with years of experience in these types of deals.
Just answer these questions and we will give you a quick estimate:
Type of rental property (condo, townhouse, single family, etc.)
Property location (Exact Address)
Current market value
Mortgage balance (if applicable)
Loan amount sought
Proposed use of funds
Borrowers can be corporations or LLCs
Existing income reflected in bank statements
Cash reserves reflected in bank statements
Credit score of 550 or higher (exceptions apply)
Ability to perform exit strategy may be needed