Finding a Real Estate Investor Loan
by Macha Me
(Baltimore, Maryland, USA)
Ask Kate about finding a real estate investor loan: Hello Kate, I am looking to buy a 2 unit dwelling as an investment property in Baltimore, MD. This will be my very first investment. I want to know types of mortgages I have at my disposal that will allow a very low downpayment.
I have very good credit and also can afford to invest 20 percent of my personal money towards the down for rental property.
But I'd rather not use my own money. I prefer to borrow most of the downpayment. Is FHA an option? What are my other options? Thanks again.
Kate Answers: Finding a Real Estate Investor Loan
FHA financing is the premiere choice among home buyers, owner occupied home buyers that is.
But even though you plan to buy a duplex, you may still be able to take advantage of FHA home loans.
Low Downpayment FHA Mortgage Loans
For home buyers who plan on living in one side of the duplex (no less than one year) and renting the other unit, FHA mortgage loans
offer a low downpayment option.
But if your intention is to rent out both sides of the duplex, you have one less option.
Conventional Investor Mortgages
Since investor mortgages, especially on multi-units, have historically ranked at the top of the list for foreclosures, a low down conventional mortgage may be more difficult to obtain as an investor, right now.
The issue with low downpayments for nonowner occupied loans is that the properties do not cash flow very well. But this may be an acceptable trade-off to you. Even so, read Real Estate Investor Loans
to keep your eyes wide open.
Private Money Lenders
Of course, another option is with family members looking for a better return than banks can give right now. You may have a relative interested in offering you private mortgage financing
to purchase the duplex.
Short Sale & Foreclosure Properties
Even with a plentiful supply of short sale and foreclosure properties on the market, investors still need help financing their purchases, in your case a duplex.
I have a suggestion!
I would interview three real estate agents
experienced in listing and selling duplexes. Since Realtors are in contact with local and nationwide mortgage lenders, you may find your best source of money by asking for a referral.
And don't forget to check my Mortgage Lender Directory at List of Mortgage Companies in Maryland
One more thing. I'd like to hear back from you. Let me know if this page is helpful to you. Comment on Finding a Real Estate Investor Loan
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