Investment Property Purchase Loans
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 25% down on investment properties, have reserves of 6 months of PITI (principal, interest, taxes, and insurance) payments. You will also 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.
Commercial Property Investment Loans:
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 can be between 1-4 or 5+ (and Mixed Use Properties are allowed). This is a Stated Income program (also known as light documentation) and requires a credit score in the 660 range.
Appraisals are roughly between $650 to $1,200. Similar to residential loans, your max loan to value is 75%. A major difference between the two programs is rate. Commercial mortgage rates are higher than residential loans. This is mostly because that our commercial mortgage program is “Stated Income.”
I would like to talk with you about your loan scenario for your upcoming investment property purchase (we do refinances as well). Call me today for a free consultation.
David Tortora NMLS 88166
Company NMLS 117273
210 South Main Street
Middletown CT 06457