Funding for real estate deals is necessary for most investors to get started. Experienced investors take advantage of the opportunity to profit from using the funds when necessary to grow their investment business. Loan programs to help you buy investment property are more difficult to attain than for primary residences. However, if you do your homework, you will find a loan program that will suit your needs. We will explore four loan programs to help you buy investment property in Cincinnati.
Businesses offering long-term loan programs to help you buy investment property in Cincinnati, these loans help buyers with less than perfect credit, yet are often accessed by successful investors as well. The lenders profit off of the interest you charge. Standard ranges are from 6% to 14%. The terms can vary, typically 24 to 144 months. The loan terms and interest rates can vary greatly when a private individual makes the loan. These loans may be from a family who want to help attain the benefits of passive income or friends and acquaintances. There is also the option of a “peer-to-peer” loan, typically found online, where you convince a private investor to work with you.
FHA and VA
These are government-backed loan program to help you buy investment property in Cincinnati. One caveat of these loans is that the borrower dwells in the property for a minimum period, thereby qualifying for the loan as a primary residence. These programs are for multi-family properties of two to four units, FHA loans requiring only 3.5% down and zero down for a VA loan. Interest rates are lower for these loans. A 30 year fixed FHA is currently 3.250% with an APR of 4.31%, and the 30 years fixed VA is presently 2.500% with an APR of 2.804%. These lower interest rates can help first-time buyers attain homeownership and begin their real estate investment business to build their retirement nest egg.
Fannie Mae and Freddie Mac
These loans conform to financing limits set by the FHA and meet specific underwriting guidelines and require an excellent credit history and a robust income. It is best to have a larger down payment. These conventional loans are a great way to help experienced investors buy more investment property in Cincinnati. Careful research will show you that these loans are available from many providers at very competitive rates, so it pays to compare.
Portfolio loan programs are easier to attain, as they are nonconforming, helping people with less than perfect credit buy investment property in Cincinnati. Experienced investors may also finance several properties under one portfolio loan. These lenders profit from originating loans, as conventional lenders do. However, they hold the mortgages in their portfolio instead of selling them on the secondary mortgage market. The interest rates are higher, varying from nearly 6% to 12%, with loan origination fees of up to 3% and closing costs of 2% to 5% of the borrowed amount. The terms of the loan can vary greatly, depending upon which program you select.
Help in Buying Your Investment Property
Sound complicated? The experienced professionals at Team Sztanyo can help guide you to the loan program to help you buy investment property in Cincinnati. At Team Sztanyo, we take the time to listen to the hurdles you may be facing. Our team at Team Sztanyo is ready. With experts from every walk of the real estate industry, Team Sztanyo is on call to help you. Whether you’re a first-time investor or prepared to take your Cincinnati real estate investment portfolio to the next level, Team Sztanyo makes it easy to achieve your investment goals. Send us a message or call Team Sztanyo at (513) 813-6293 to learn more.
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You only need to make one stop, with the convenience of our professional hybrid agents and investors all rolled into one at Team Sztanyo. If you have any questions about which option is best for your situation, Team Sztanyo will take the time to listen. Team Sztanyo will address any of your concerns with no obligation. To learn more about how our hybrid agents and investors can help you solve your problems, contact Team Sztanyo at (513) 813-6293 today and get started. When you call, we listen. We want to find out what is causing you stress, how fast you need to sell, and how we can help you.