Real Estate Investor
Real Estate Investors
Financing an investment property is different than financing your primary residence and there are typically stricter lender requirements including down payment amount, Fico score and debt service coverage ratio. We’re going to look at five financing programs that LendUs offers on both investment property purchases and cash-out refinances.
Typically, when we refer to an investment property, we’re talking about a residential property with 1 -4 units that is partially or completely used for generating income. A property with four or more units is commonly referred to as a multi-family commercial building and typically requires a commercial loan.
Before issuing a commercial loan, the lender primarily evaluates the income qualification of the property, the historical representation of income received to support the future debt of the property or a debt service coverage ratio. In general, a multi-family commercial loan will require a larger down payment than that of a residential loan.
The loan programs that we’re going to cover are tailored to long term real estate investors who place importance on cash flow, property appreciation, and a market where rents increase over time. Before we delve into the specific loan programs, let’s quickly go over some commonly used lending vocabulary so you’re familiar with them as you read ahead.
we will outline five LendUs investment property financing programs: