April 19, 2022
Thinking about building out your investment portfolio? Diversifying with real estate? The good thing is that with real estate investments, there is profit potential regardless of the state of the market. So, what’s a financially savvy way to go about investing?
An investor loan is a mortgage designed with investments in mind. These types of mortgages generally allow a borrower to borrow loans at higher amounts than traditional mortgages. On top of that, with an investor-specific loan, a borrower typically isn’t limited to one mortgaged property – yes, this means you could expand your real estate investment portfolio with the option to finance multiple properties at once.
Do you aspire to be the landlord of multiple properties? Do you simply want to buy property now to sell for a profit later? Are you exploring an Airbnb possibility? (Did you know that since its start in 2007, the amount of Airbnb “Hosts” has grown to 4 million? This means 4 million people have taken the opportunity to financially benefit from rental income.) No matter the reason for your investment property loan, know that there aren’t financing solutions specific to your preferred investment type; since investment property loans are designed with rental properties in mind, they’re tailor-made to fit your needs and work for your goals.
Now, if you’ve heard or experienced firsthand that securing mortgages for rental properties is more challenging than a traditional home loan for a primary residence, you’re not alone. That’s why Newrez offers a tailor-made line of non-qualified mortgage products built for easier qualifying.
Non-qualified mortgages (“Non-QMs”) are an increasingly popular mortgage choice for more borrowers. Since no two homebuyers, or investors, share the same finances, it’s important that their needs are met with financing solutions that make their goals a reality.
Our Non-QM Highlights:
With SmartVest, investors have access to a variety of options to fit specific needs.
With SmartVest, you could:
A borrower was looking to buy another property to expand their investment portfolio. The subject property was reviewed and verified to generate adequate rental income to cover the mortgage payment. Additionally, because the borrower had a sizeable amount of money to put down and a 660-credit score, the borrower met SmartVest’s qualifying criteria. With this loan, the borrower purchased another rental home (largely based on the appraisal) and can have the mortgage debt paid through the rental income it generates.
Investor financing shouldn’t be difficult to secure! With Newrez, we tailor our home loan options to make sense for more borrowers. Wondering if SmartVest is your next investment property opportunity? Our Loan Consultants are happy to discuss your options!
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Newrez believes the lending business shouldn't just be about home loans - it should be about homeowners. That's why our employees get to know our customer's real needs, through final closing, and beyond.