Increasing Your Wealth with Investment Property Loans
Those looking to increase their wealth through real estate generally require more than two homes. In order to do so, borrowers need to utilize investment property mortgage programs. It is difficult for borrowers to find a program which works for them because not all mortgage lenders offer investment property loans, and those who do may have rigid requirements.
Stephen Needs an Investment Property Loan
Stephen is a lawyer with his own law office. However, he would like to have additional income in the form of a rental property. Stephen currently owns two properties, but he would like a third. His third home will strictly be for rental income. Stephen has saved enough money to give a 25% down payment on his third home as well as keeping six months of savings for each of his properties.
Investment Loan Programs
Investment Loan Programs are not offered by all mortgage lenders. And the terms of those who do offer investment loan programs will vary based on the chosen mortgage lender. Most mortgage lenders stop issuing loans on the 3rd or 4th property. It is not unheard of for mortgage lenders require borrowers to take out a line of credit (HELOC) on their home.
Big banks do not usually offer investment mortgage programs and their programs are rigid. Bank of America does not offer an investment property loan. Meanwhile, Wells Fargo requires the borrower to have two years of property management.
Kingston Mortgage’s Investment Loan Mortgage Program
The Kingston Mortgage investment loan mortgage program does not require proof of income. This flexibility is convenient for potential borrowers like Stephen who own their own business and have fluctuations in income.
Stephen happens to own two other properties which will qualify him as an experienced investor. An experienced investor must have owned two or more properties in the last 12 months, while a first-time investor must have owned a primary residence for the last 12 months. However, our investment loan mortgage program does not require prior property management experience as a mandatory requirement for our loan.
Our Investment Loan Mortgage program gives potential borrowers the flexibility to finance an unlimited number of properties. Mortgage lenders typically only finance up to two properties. It is rare for a mortgage lender to finance three properties. Having the ability to finance for an unlimited number of properties is practical for investors like Stephen who need financing for more than three properties.