An investment property is one from which you earn income, either by renting it out, or using it as a commercial space for doing business. Therefore, the loan for buying such investment properties come with a higher interest rate, stringent repayment terms and bigger down payment, when compared to traditional mortgage home loans. Here in Arizona and Colorado, if you’re looking for obtaining such investment property loans, there are credible lenders in the form of banks and financial institutions that lend to borrowers on favorable terms, better than most companies.
So, you need to find a professional mortgage broker or firm that can help you get access to such lenders that specialize in investment property loans in Colorado and Arizona. There are 4 types of loans that can be used for buying investment property, viz; conventional bank loans, private money loans, home equity loans and hard money loans. Therefore, it is imperative to partner with an accredited agency that can connect you with A+ certified lenders in your state. And, one such consultancy firm is “Affordable Interest Mortgage”, which has a vast network of banks.
Programs and Requirements for Investment Property Loans in the US
As a borrower, there are several government backed or federally sponsored programs to choose, when purchasing investment property loans. It can be conventional loans, VA loans, FHA loans, cash-out-refinance and non-QM loans. And, when you’re taking out one such conventional loan for investment property , you definitely have to qualify the stringent eligibility criteria. Here, the down payment requirement can be to the tune of 15-25%, or even more. You are required to submit your employment status, income details, proof of residence, bad debts if any, credit history, etc.
In fact, when compared to conventional home loans Arizona or Colorado, here you must have a minimum credit score or 640, and it can touch 700, if you’re purchasing a multifamily residence. There are some lenders and banks who might ask for IT tax returns, which show you’ve previous experience of managing rental properties. So, determine the type of property you want to invest, and apply online for one such special mortgage loan that offers highly flexible repayment terms and low interest rates.
Here, the down payment requirement can be to the tune of 15-25%, or even more. You are required to submit your employment status, income details, proof of residence, bad debts if any, credit history, etc.