Investment Property Loan in Florida
Are you planning to generate income from your newly purchased property? You may be interested in our investment property loan.
What is an Investment Property Loan?
An investment property loan helps you finance the purchase of an income-generating property, whether it’s a rental or you are renovating it to flip it. This type of loan has no limit, but investment property mortgages only allow financing on properties with one to four units.
The Benefits of an Investment Property Loan
Property investment loans offer borrowers a number of great advantages, especially those looking to build wealth from their purchase:
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- Property appreciation: Because real estate will often increase in value over time, this can help investors build long-term equity in their home.
- Passive income potential: Owning rental properties is a great way to provide a steady income stream.
- Tax benefits: Investors can take advantage of tax deductions on property taxes, mortgage interest, and depreciation.
- Diversification: investors can reduce financial risk for investing in real estate for a diverse investment portfolio.
With access to such great benefits, the eligibility requirements for this type of mortgage loan are typically a lot more stricter than conventional loans.
What is Considered an Investment Property?
To be considered for this type of loan, you need to purchase property that meets the eligibility requirements. Properties that will be considered include:
- Duplexes
- Condominiums
- Manufactured homes
- Multi-family homes
- Cooperatives
Requirements of an Investment Property Loan
While requirements will differ depending on the lender, these are the minimum requirements you can prepare for:
- Down payment from as low as 15% and up to 20%
- A debt-to-income (DTI) ratio of no more than 45%
- A credit score of 620 and above (if you want to lower your down payment, you need a credit score of at least 700)
- At least one and six months of mortgage reserves
- History of property management (will depend on the lender)
When lenders are assessing the loan eligibility of a borrower, they will also consider the potential future rental income that the property may bring in.
Apply for an Investment Property Loan in Florida
Finance your income-generating property with a mortgage from Avanti Lending. Our team is committed to providing tailored financial solutions to your unique financial needs at competitive rates. Start your mortgage application today by contacting us at (954) 888-8596.
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