Most people buying a rental income property do not have the money to pay for the property. A private lender, also known as a hard money lender, can provide a mortgage which allows you buy the property. The loan to value ratio of the rental income property will be a major factor in determine how large a mortgage the buyer can qualify for. It is important to remember that a private hard money lender will take several factors into consideration when approving a mortgage, including your credit rating and your ability to service the loan.
Before applying for a loan or mortgage buyers should have a down payment. Private lenders require a down payment of at least 20% on rental income properties. To get better mortgage terms you should have a 25% down payment. The amount of a down payment is a major factor of a mortgage. A higher a down payment reduces the risk to the lender. This also improves the chance of being approved for a mortgage.
A high credit score can improve your chances of being approved for a mortgage or loan. Credit ratings tell how good a person is at borrowing money and paying it back. Buyers should always look for ways to enhance their credit rating before applying for a loan. It is important to gather all the necessary information when applying for a mortgage. Including proof of income, notice of assessments, credit information and any documents related to the purchase of a property.
Our brokers will give you the best advice possible regarding your rental income mortgage. Our mortgage brokers will provide you with professional service. The application process will be quick and easy. Our brokers will take the time to understand your financial requirements. Understanding our clients is a very important part of our business. We want to ensure that we are doing our job to the client’s greatest benefit. To get the best options for a rental income property call us today.