What is a Mortgage for an Investment Property?
What people mean by investment property is a residential property with at least 4 units. The properties of the best private financing for home Georgia is that it offers the best rates in long term and tend to be affordable on daily basis.
1. Mortgages That Suit the Investor-Only Lender
These type of lenders are exclusive to the clients and businesses who intend to invest in residential properties. The exclusivity of these lenders to the real estate make private financing for home Georgia approval a whole lot easier. However, they are exclusive only for the businesses and do not cater to the individuals and there is limit of up to 4 loans which might limit the activities of some businesses.
Who should go for an Investor-Only Lender?
If you possess a significant down payment, say more than 25%, and you are a prime borrower, these might be right borrower for you if you fall into the following criteria:
- A legal entity is like LLC is behind your investment in rental properties.
- You history extends beyond at least 4 mortgaged properties.
- Your plan is to go beyond just rentals.
Places to find Investor-Only Lenders
These lenders usually advertise themselves as set up particularly for businesses that invest in real estate. It takes a few minutes for the loans to get approves and that too in market competitive rates. However, qualification is subjected to the borrower being operating through a legal business entity.
What are the Steps for Investment Property Loan Approval?
This process refers to the gathering of documentation both financial and employment and its submission to the lender. This is followed by the verification from your lender and running checks on your credit history. The amount you qualify, hence, will be calculated. The documents you mightb e required to reproduce:
- Rental income proof
- Personal tax returns for 2 years
- Contract allowing Property Purchase
- Copies of Leases
At this step, the borrower should start looking for an investment property based up on the amount quoted by the lender in the pre-approval agreement. The deal is supposed to be underwritten at the moment you find the suitable property and make an offer.
This step consists of the wait for property appraisal and submission of any additional documents that are required on the way. No matter what lender you chose in the first place, the ideal closing time for a private financing for home Georgia is 30 days.