Investment Property

If you want to invest in real estate but you don’t have the cash to invest, you need to get a loan.  Our Experienced Mortgage Brokers at Counsel Mortgage Group, LLC are here and are ready to help.  Here are the rules to trying to get a loan in investment properties.

First you have to look at the condition of the property.  Is it move-in ready or does it need repairs (holes in the walls, cabinets missing, toilet malfunction, etc.)?  If it is move in ready then conventional financing will be a good option for you.  Generally, 20% down payment will be required for the purchase of an investment property.  The interest rate on investment properties are higher than primary residences.

Now lets say that the property needs a re-model or you want to put in a pool.  There is a program from Fannie Mae called the “HomeStyle” program where they will allow you to take those improvements and put them into the loan.  It requires 25% down and you are going to have to get the final specs from the licensed contractor you’re going to be using.

All your plans need to be approved by the lender with your credit and income documentation, so when the loan closes both have been approved. The construction would start after the loan has closed.

What if you can’t qualify for a loan?

What happens if you have bad credit, or you don’t have the contractor yet for a remodel, or the property is in disrepair and you cannot get a conventional loan.  We can broker the loan to hard or private money lenders.  They will lend on the property, by analyzing the value of the property.  What they are really looking for is a exit-strategy from you.  They want to know that in 6 months you are going to sell the house or in 6 months the credit issues you have are going to be resolved so you can refinance and they can get their money back.  They help serve people who find a great deal on a property but can’t quality for a loan.  

When shopping for the best mortgage broker in Arizona, you need to know the history of the company and their mortgage brokers.  At Counsel Mortgage Group, LLC, founded by an experienced CPA and attorney, we have closed hundreds of loans over the years and specialize in assisting you to obtain the right loan.  Check out our experienced mortgage brokers and give us a call today or contact us.  We look forward to working with you!