Funding for real estate deals is necessary for most investors to get started. Experienced direct cash home buyers in Omaha and Council Bluffs take advantage of the opportunity to profit from using the funds when necessary to grow their investment business. Loans for investment property are more difficult to attain than for primary residences. However, if you do your homework, you will find a loan program that will suit your needs.
We will explore four loan programs to help you buy investment property in Omaha and Council Bluffs.
Businesses offering long-term loan programs to help you buy investment property in Omaha and Council Bluffs, these loans help homebuyers in Omaha and Council Bluffs with less than perfect credit, yet are often accessed by successful direct cash home buyers in Council Bluffs and Omaha s as well. The lenders profit off of the interest you charge. Standard ranges are from 6% to 14%. The terms can vary, typically 24 to 144 months. The loan terms and interest rates can vary greatly when a private individual makes the loan. These loans may be from a family who want to help attain the benefits of passive income or friends and acquaintances. There is also the option of a “peer-to-peer” loan, typically found online, where you convince a private investor to work with you.
FHA and VA
These are government-backed loan programs to help you buy investment property in Omaha and Council Bluffs. One caveat of these loans is that the borrower dwells in the property for a minimum period, thereby qualifying for the loan as a primary residence. These programs are for multi-family properties of two to four units, FHA loans requiring only 3.5% down and zero down for a VA loan. Interest rates are lower for these loans. A 30 year fixed FHA is currently 3.250% with an APR of 4.31%, and the 30 years fixed VA is presently 2.500% with an APR of 2.804%. These lower interest rates can help first-time home buyers in Council Bluffs and Omaha attain homeownership and begin their real estate investment business to build their retirement nest egg.
Fannie Mae and Freddie Mac
These loans conform to financing limits set by the FHA and meet specific underwriting guidelines and require an excellent credit history and a robust income. It is best to have a larger down payment. These conventional loans are a great way to help experienced Council Bluffs and Omaha real estate investors buy more investment property in Omaha and Council Bluffs. Careful research will show you that these loans are available from many providers at very competitive rates, so it pays to compare.
Portfolio loan programs are easier to attain, as they are nonconforming, helping people with less than perfect credit buy investment property in Omaha and Council Bluffs. Experienced Omaha and Council Bluffs real estate investors may also finance several properties under one portfolio loan. These lenders profit from originating loans, as conventional lenders do. However, they hold the mortgages in their portfolio instead of selling them on the secondary mortgage market. The interest rates are higher, varying from nearly 6% to 12%, with loan origination fees of up to 3% and closing costs of 2% to 5% of the borrowed amount. The terms of the loan can vary greatly, depending upon which program you select.
Sound complicated? The experienced professionals at Harter Investments can help guide you to the loan programs to help you buy investment property in Omaha and Council Bluffs. At Harter Investments, we buy houses in Omaha and Council Bluffs and we take the time to listen to the hurdles you may be facing. Our team at Harter Investments is ready. With experts from every walk of the real estate industry, Harter Investments is on call to help you. Whether you’re a first-time investor or prepared to take your Omaha real estate investment portfolio to the next level, Harter Investments makes it easy to achieve your investment goals. Send us a message or call Harter Investments at 402-939-6556 or visit our website at www.harterinvestments.com today to learn more.