- October 3, 2019
- Posted by: Michael Meyer
- Category: commercial mortgage
Connecticut Investment Property Loan Programs
Northeast Financial is your Connecticut resource for purchasing investment property in our State. We offer two great programs that assist investors with getting their loans closed.
Residential Property Investment Loans:
Non owner occupied investment properties have to be from 1-4 units (condos as well). Generally, you will need to put 20-25% down on investment properties. Secondly, borrower must have reserves of 6 months of PITI (principal, interest, taxes, and insurance) payments. Finally, you will need a good credit score to get a competitive rate. The property must also be in good condition in order to pass through an appraisal.
One way to buy an investment property that you will live in is to go the FHA route. This option allows you to buy up to a four family home. This is a great option too because you only need to put down 3.5 percent down. Also the debt ratios are much higher which allows the borrower to buy more of a house.
Connecticut Investment Property Loan Commercial Program:
Doing a commercial mortgage is a different process than that of doing a residential loan. The investment property will still have to be non-owner occupied. You can do the loan as an individual or as a LLC/Corp. Units must be between 1-4 or 5+. There are stated income and conventional options available. Credit score requirement vary depending on the size of the loan.
Appraisals are roughly between $650 to $1,200. Similar to residential loans, your max loan to value is 80% on a 30 year fixed Connecticut Investment Property Loan. A major difference between the two programs is rate. Commercial mortgage rates are a bit higher than residential loans, but can still be in the 6s.
In closing, I will help you every step of the way for your upcoming purchase or refinance on your Connecticut Investment Property Loan. Call me today for a free consultation at 860-876-0572.