It is always helpful to have a few tips when you are getting into a new business. These tips will help you to secure your first Arizona Rental Property Loans as you work to grow your passive income.
Even with the housing market well on its way to recovery after the crash, there are still some great deals to be found for real estate investors who are looking to create a portfolio of rental properties. But in many cases, these would be investors are not familiar with the process of securing Arizona Rental Property Loans. These tips can guide new investors on the path to a very profitable real estate investment career.
The first important piece of information for new real estate investors is that they will need to make a pretty healthy down payment to secure a loan for an investment property. This is because mortgage insurance does not cover investment properties. This means that lenders will require at least a 20% down payment. But if you can manage to make a 25% down payment you are likely to qualify for a better interest rate, which will allow you to enjoy a savings on interest over the entire life of the loan.
Another way to save yourself some money is to do everything that you can to increase your credit score before applying for Arizona Rental Property Loans. Most lenders are looking for borrowers to have a credit score of 740 or better for a loan on an investment property. If your credit score is lower than 740, you will have to pay anywhere from .25 to 2 points as an added fee to receive the lowest interest rate possible. You can request a quote for the total cost of the loan at the various interest rates, as well as the fees to buy down the interest to verify exactly how much you will save by reducing the interest rate.
When you are seeking financing on an investment property be sure to check out all of your options. You could find that a private lender, a personal loan, or peer to peer lending is a better option than a traditional loan. And when you are exploring your options for making a substantial down payment, you should consider using a home equity line of credit, credit cards or even refinancing your personal home to use that equity for the down payment on your first investment property.
Loans for income properties are not quite the same as traditional mortgages for your family home. But using just a few tips to secure your first Arizona Rental Property Loans can help you to get a solid start on your real estate investing career. As with any financial decision, the more information that you have the better your decision will be. Invest the time in exploring and researching your options to begin your career as a rental property owner with as solid a foundation as possible. The reward for your time and hard work will be a great return on your investment and financial security.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.