Recently, investment mortgage rates for single family properties have reached a ten year low. Many rental property owners are scrambling to take advantage of new investment property financing guidelines that no longer require tax returns or any proof of income.
Just over one year ago investment mortgage rates hovered anywhere from 8-10% depending on the borrower’s credit history and equity position in the subject property. Most of those loans were 1-3 year terms that require you to refinance your rental property again and again, leaving you with the feeling that you will never be able to pay off your residential investment property.
Income property lending has recently come upon a stage where investment property mortgage rates have dropped significantly. Some rental home financing programs have interest rates starting from 4.5 to 6% on full stated income, no document programs. And every week it seems like a new program is rolled out with better terms, rates and lower fees.
All indications are that over the next 1-2 years, rental property lenders will be loaning money at interest rates that are comparable to, and at times even more advantageous than, conventional Fannie and Freddie products. This trend in real estate investment financing will allow borrowers to obtain longer terms on their income property with better rates.
For the first time in a long time, a 30 year mortgage on your income property won’t cost you an astronomical amount of money and will finally allow investors the chance to lock into long term or permanent financing on their investment property.
If you are thinking about buying an investment property or want to compare stated rates against conventional loan rates, call and talk to a loan agent today and find out if you qualify. Call (818) 330-6751.