What to Know About Real Estate Investment Loans: Newrez SmartVest

3 Minutes

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April 19, 2022

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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.

Couple with child viewing a kitchen in new home

How to Invest in Real Estate

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.

What is a Non-Qualified Mortgage (Non-QM)?

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:

  • Loan amounts up to $3M
  • Lenient qualifying criteria
  • Open to less-than-perfect credit
  • Alternative income documentation
  • And more!

 

What is SmartVest?

How to Invest in Rental Properties for Income Using Newrez’s SmartVest

With SmartVest, investors have access to a variety of options to fit specific needs.

With SmartVest, you could:

  1. Purchase an additional property and expand your investment portfolio inventory.
  2. Tap into equity in your current portfolio of homes to buy more investment properties.
  3. Use equity in your current portfolio to upgrade or remodel existing portfolio properties.
  4. Use the market rent (cash flow) from the subject property to qualify.

Here’s an example scenario:

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.

Top Reasons to Choose Newrez’s SmartVest:

  • Less documentation required
  • No income documentation required
  • Easier qualifying

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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Why Newrez?

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.

  • Industry leading loan options

  • Simple pre-qualifications and application processes

  • Loans for everyone, from seasoned investors to first-time buyers

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