Purchasing non-owner occupied real estate can be a strategic investment for generating rental income and building long-term wealth. By securing a mortgage specifically designed for investment properties, you can acquire residential investment properties that you do not intend to occupy. These loans typically offer competitive rates and terms, allowing you to leverage the property’s potential for appreciation and rental income. Additionally, investment property loans often come with flexible repayment options and the ability to finance multiple properties, making it easier to expand your real estate portfolio and maximize your returns.
Refinancing non-owner occupied real estate is another powerful tool for investors looking to optimize their financial strategy. By refinancing, you can take advantage of lower interest rates, reduce monthly payments, or access the equity built up in the property through a cash-out refinance. This equity can then be reinvested into other business ventures, used to improve the property, or fund fix and flip projects, further increasing its value and rental income potential. Refinancing can also help you consolidate debt, improve cash flow, and better manage your investment portfolio, ensuring that your real estate assets continue to work effectively towards your financial goals.
Purchasing and refinancing non-owner occupied real estate can generate rental income, build long-term wealth, and optimize financial strategies through competitive loan rates, flexible repayment options, and access to equity.
Rental loans are designed for properties that will be rented out to tenants. These loans focus on the property’s ability to generate rental income to cover the mortgage payments.
Fix & Flip loans are short-term loans used to purchase, renovate, and sell a property for a profit. These loans are suitable for investors looking to quickly improve and resell properties.
New build loans are used to finance the construction of new properties. These loans are suitable for investors looking to develop new real estate projects.
Multifamily loans are used to purchase properties with multiple units, such as duplexes, triplexes, or apartment buildings. These loans are suitable for investors looking to generate income from multiple rental units.
Rental loans are designed for properties that will be rented out to tenants. These loans focus on the property’s ability to generate rental income to cover the mortgage payments.
Fix & Flip loans are short-term loans used to purchase, renovate, and sell a property for a profit. These loans are suitable for investors looking to quickly improve and resell properties.
New build loans are used to finance the construction of new properties. These loans are suitable for investors looking to develop new real estate projects.
Multifamily loans are used to purchase properties with multiple units, such as duplexes, triplexes, or apartment buildings. These loans are suitable for investors looking to generate income from multiple rental units.
Each type of purchase has its own unique considerations and potential benefits. It’s important to thoroughly research and understand the specific requirements and risks associated with each type before making an investment.
*We strive to keep our information current, but the lending landscape changes daily, and requirements can vary between lenders. The information provided is intended as a guideline to begin the approval process. Additional information, documents, and requirements may be needed.
A non-owner-occupied mortgage is a loan designed for properties that the borrower does not intend to live in. These properties are typically used for investment purposes, such as rental properties.
Lenders will assess the property’s potential rental income and compare it to the mortgage payment, property taxes, insurance, and other expenses. This is often referred to as the debt service coverage ratio (DSCR).
While requirements can vary by lender, a higher credit score is generally needed for non-owner-occupied mortgages compared to owner-occupied ones. A minimum credit score of 640-680 is often required, but a score of 700 or higher can help secure better terms.
Non-owner-occupied mortgages typically require a larger down payment than owner-occupied loans. Expect to put down at least 20-30% of the property’s purchase price.
Yes, interest rates for non-owner-occupied mortgages are generally higher due to the increased risk associated with investment properties.
Yes, lenders often consider the potential rental income from the property when determining your eligibility for the loan. They may require a lease agreement or rental history to verify this income.
You will typically need to provide:
The DSCR is a measure used by lenders to determine if the property’s income will cover its debt obligations. A DSCR of 1.25 or higher is often required, meaning the property should generate 25% more income than the mortgage payment.
Yes, lenders may have stricter requirements for non-owner-occupied mortgages, including higher reserves (savings) and more stringent property inspections.
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