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Types Of Rental Property Loans To Finance Your Investment

Types Of Rental Property Loans To Finance Your Investment

There are several types of rental property loans that you can use to finance your investment. These loans can be a good way to increase your potential returns (remember to strike a balance between risk and reward).

Conventional Loans

A conventional loan is a traditional mortgage, the most common type of loan that many people are familiar with. They can be used to purchase an existing property or to finance the construction of a new one. Credit unions, lenders, or banks offer this type of loan. The interest rates tend to be lower compared to other options if you have a good credit score.

Federal Housing Administration (FHA) loans

You will also find this type of loan being offered by mortgage brokers and lenders. The requirements for the down payment and credit score tend to be lower than conventional loans. In addition, you can use income from an existing rental home to help you qualify for an FHA loan. For multifamily property investors searching for a rental property loan to finance a new acquisition, construction, or renovation, FHA loans are a great option.

Veteran Affairs (VA) Multifamily Loans

The Veterans Affairs (VA) offers a number of different loan programs to help Veterans, active-duty service members, and their families, which include VA multifamily loans. There are no minimum requirements on credit score or down payment and those eligible can buy up to seven units. If you use a VA multifamily loan, bear in mind that one of these units must be used as your primary residence.

Loans for Rental Investments

The popularity of single-family rentals[SS1]  is tough to beat. Therefore, they remain as one of today’s fastest-growing asset groups. As the demand for affordable housing increases, applying for single-family rental homes through a private lender is ideal if you are looking to make a profit from your investment. At InstaLend, our single-family rental loans are primarily asset-based and easier to apply for than traditional loans. Our single-family rental loans have a minimum loan amount of $75,000, a 30-year term, do not require income verification, and can be tailored to your specific investment needs. Contact our knowledgeable experts to find out more.

  • October 3, 2022
  • 2 min read
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