Properties that owners do not live in but instead rent out to others are classified as investment properties. Purchasing an investment property can be a great way to make extra money. The mortgage lenders at Supreme Lending in Allen, Texas, can fill you in on the specifics of applying for a home loan to purchase an investment property.
Investment properties can be dwellings such as duplexes, multifamily homes, apartment buildings, or even single-family homes, as long as the owner is not living in them. Some homeowners buy an investment property not for the purpose of renting it out, but for rehabbing and flipping it. Others buy it with the intention of managing it long-term to boost their income stream .
Qualifying for a mortgage loan for an investment property is generally more challenging than getting a home loan for a primary residence ,and the interest rate will likely be higher. You also often are required to put down at least 20% on an investment property.
If you are interested in applying for a home loan in Allen, Texas, to purchase an investment property, meet with the mortgage lenders at Supreme Lending. We can go over your paperwork with you, run the numbers, and determine whether you would qualify for a mortgage loan for an investment property.