Buying an Investment Property?

Fixed Rate Loans. A fixed rate loan ensures that your mortgage rate remains fixed, and your monthly mortgage payment never changes. Intelliloan has various repayment options for your specific needs. A shorter repayment term means you will pay your mortgage off quicker and save thousands in interest.

• 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 may be one of the various rental expenses you may be able to deduct on your taxes –consult with your tax advisor on tax deductibility.

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.

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.

According to many tax experts, interest is often the single largest deductible expense of a landlord. In addition, you may be able to also recover your real estate costs through depreciation. This is not tax advice; you should speak to your personal tax advisor for more information about possible landlord tax benefits.

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 833-984-2471, or submit this online form and we will help you meet your goals in the best possible way.