Buying an Investment Property
Intelliloan Makes it Simple for You to Invest for Growth
- Before you start your search for investment property, maximize your bargaining power by getting preapproved for your investment property loan.
- Use Intelliloan’s leading-edge online tools that will enable you to close your loan faster than many other lenders.
- If you need a real estate agent who can assist you through the buying process, we can help you connect through our partners with a suitable agent in your area.
- We have been helping thousands of Americans invest smartly in properties. Call one of our Home Loan Specialists at (800)-470-7750 for guidance, or just complete this online form and we will contact you.
Recommended Loan Options for Your Investment Property
This option ensures that your mortgage rate remains fixed, and your monthly mortgage payment never changes. With these terms, it is time to take advantage of the lower mortgage rates.
This option gives you the same benefits as the 30-year loan, but you pay your mortgage off in half the time. Choose a fixed rate 15-year mortgage and save thousands of dollars in interest.
Basics of an Investment Property Loan
If you plan to use your property only for tenant rental, it will be termed as an investment property. A loan on this property will usually require a higher credit score and have a slightly higher interest rate.
Key requirements for an investment property loan:
- You may be required to present a lease agreement that shows that the property is tenant-occupied.
- If the tenant gets a right to buy the property according to the lease agreement, it should be secondary to your mortgage.
- If the lease has expired, and the tenant is paying on a monthly basis, you must provide a letter to this effect.
In an investment property, your mortgage interest is one of the various rental expenses you are allowed to deduct on your taxes.
Is Landlording a Prudent Idea?
A whopping 37 percent of Americans rented their homes instead of owning them, as of 2015. With such a large number of potential tenants in the market, it is an opportune time to think of a part-time career as a landlord.
If your property can attract tenants and you can retain them for a longer period of time, landlording can prove to be immensely profitable and continue to produce a substantial passive income.
How to Finance Your Project?
You can jumpstart a career in rental business by acquiring a mortgage that minimizes short-term risks while you search for renters. Although you will have to pay an interest on your mortgage, but at least a part of your monthly mortgage payments could potentially come from your rental receipts. When your tenants pay rent, they build equity in your investment property and enable you to pay off your mortgage faster if you don’t spend that money on other items or any items for that matter.
If you wish to avoid depending too much on your savings to make the down payment on your investment property, you could consider a home equity loan. Speak to an Intelliloan Home Loan Specialist today to discuss the best ways to fund your investment property.
Landlord Tax Benefits
According to tax experts, interest is often the single largest deductible expense of a landlord. In addition, you can also recover your real estate costs through depreciation.
In the business of investment properties, if you wait too long, you could miss the bus. If you are considering buying an investment property, call an Intelliloan Home Loan Specialist today at (800)-470-7750, or submit this online form and we will help you meet your goals in the best possible way.