Investment Property Loan

Financing for Real Estate Investments

5280Lend.com has extensive experience with real estate investing. Our team understands the processes and requirements for investment property loans.

As Colorado mortgage loan experts, we understand how investment property lending works. We offer personalized service for real estate investors in the Denver Metro area and the entire state of Colorado.

What Is an Investment Property Loan?

An investment property loan is a mortgage used to finance the purchase of an income-producing property.

Purchasing investment real estate offers an excellent financial opportunity. Long-term financial planning usually suggests primarily stock and bond investments, but real estate investing has significant advantages in building wealth.

Whether investing in a rental property, a fix-and-flip, or developing vacant land, our team can walk you through the available lending options.

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How Investment Property Loans Work

The details for a real estate investment loan vary depending on the loan used. Typically, investment property loans have stricter requirements than loans for a primary residence.

For example, most investment mortgages require a larger down payment, higher credit score, as well as greater financial solvency. Many lenders also require six months of mortgage reserves. These are savings evidenced by statements to prove the borrower has money to cover six months of mortgage payments for all their accumulated mortgage debt.

Many investors find that locating and securing financing is a challenging process. 5280Lend.com can help! We take the stress out of mortgage lending by providing the details you need to make the right financial choice.

Types of Real Estate Investment Loans

Conventional Loan

A conventional loan offers the most flexibility for real estate investors. The government does not insure or subsidize these loans.

Because they are not government insured or subsidized, the requirements are more stringent than a loan for a primary residence. The lender will likely require larger down payments and higher credit scores to prevent the chance of default. Borrowers will also likely need to show proof of rental income in the form of a rental analysis or a signed lease agreement (if one is available).

Non-Conforming Loan

Non-conforming loans include Jumbo loans, “Alt-A” loans, portfolio loans and other outside the box financing options. Investment property financing frequently requires the need to get “outside the box” and 5280Lend.com has these options.

Is Purchasing an Investment Property Right for You?

People typically invest in real estate to build wealth, gain a semi-passive income, and secure their financial future.

Before investing, consider how the acquisition will impact your overall financial plan. Property investment requires you to put down a substantial amount of capital. Therefore, you must decide how much savings you can dedicate to the venture.

Our team will evaluate your finances and present options to help you make an informed decision for your future.

Why Work with a Mortgage Bank for An Investment Property Loan?

5280Lend.com has considerable experience with real estate investment issues and can offer guidance, advice, and access to resources that will help you make decisions about your investment.

Help you analyze your current financial situation.
Help you find the best financing for your investment.
Help you understand the financial performance of rental properties.

Help you create a plan to locate tenants, including tenant credit analysis.
Connect with local experts in construction, property management, insurance, and legal matters.

The real estate market is constantly changing. Fortunately, the 5280Lend.com team works with clients to track market trends and help you decide the right time to buy.

We work with a limited number of clients per month to ensure each client receives personalized service. Contact us to schedule a consultation.

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Investment Property Loan FAQs

What Are the Risks of Investing in Real Estate?

Real estate investment properties include risks. Investment properties differ from your primary residence in many ways and all of those are worth considering.

Most investors count on rental income to cover their mortgage payment. Some risks associated with rental income include vacancies, bad tenants, and sometimes bad economies.

Another risk that some new investors overlook are that rental properties require ongoing maintenance and repairs. These expenses need to be budgeted for and that planning will make a tremendous difference in the success of your investment.

By working with an experienced mortgage lender, you can mitigate these risks by leveraging their planning tools and advice.

What Kinds of Real Estate Investments Can I Finance with a Residential Mortgage?

Most residential lenders will finance properties that are zoned for residential use and do not exceed four units. Properties that are not residentially zoned or exceed four units can be financed, but the loan options are slightly different and look at different criteria.

Fix-and-flip properties are another type of property that investors look to finance, but, again, these financing options are also different than typical residential mortgage loans and require more analysis.

We’ll review your situation and provide recommendations based on our experience. To learn more about financing for investment properties, schedule a consultation with 5280Lend.com.

How Much Should I Pay Down on My Home Before Buying Another One?

Many people think they must pay off their home before buying another one, however, this isn’t always necessary. Using a primary residence to help finance a rental property can be a very important option to consider. By the same token, being highly leveraged can be a difficult situation. Striking a balance between using savings you’ve accumulated along with financing is the key to long-term success.

If you have enough equity in your home, it may be wise to use the money to invest in other assets, including real estate.

Make Investments with Trusted Financing Solutions

Investment properties can open the door to building wealth. While the mortgage requirements typically have stricter standards, many investors find the financing they need to grow their real estate investing portfolio.

5280Lend.com helps clients in Colorado and the Denver area finance real estate investment properties. We evaluate your finances and goals to determine the best lending solution to meet your needs.

To start the process or learn more, fill out the contact form or call us to schedule a consultation.