Investment Property Mortgages
Find Investment Property Home Loans in Texas.
If you’re ready to explore residential real estate investment opportunities in Texas, you’ll need to work with an experienced Texas mortgage lender. At the Decker Group, we’re pleased to offer Investment Property Loans for home buyers throughout the Lone Star State. Whether you’re considering a house to rent out to long term tenants, a vacation condo to market to short term visitors, or even a multi-unit property to rent to multiple tenants, we can likely help you find a financing solution that meets your needs and budget.
To learn more about mortgages for investment properties and receive a free rate quote, contact The Decker Group by calling (972) 591-3097.
What are Investment Property Loans?
Investment Property Loans are home financing agreements in which the lender agrees to loan the borrower money to put toward the purchase of a residential property that will be used as an investment. In other words, and Investment Property Loan is a mortgage for homes that are rented out by families or individuals and not used as the owner’s residence.
What if you’re buying a home to use as a vacation house AND rent it out?
In some cases, homeowners can use Investment Property Loans to finance the purchase of a vacation home or second home that they plan to reside in part-time and rent out the rest of the time. With the rise of popular home sharing sites like VRBO and Airbnb, more and more property owners are using this platform to help offset the costs of buying their dream vacation home.
If you want to buy a home to use for your own enjoyment as well as rental income, you’ll need to compare the benefits and potential drawbacks of using an Investment Property Loan vs a traditional mortgage.
Using an Investment Property Loan can be beneficial to some borrowers, because the loan application allows the property’s projected rental income to count toward the borrower’s income, which may make it easier to qualify for the loan itself. However, Investment Property Loans typically require higher down payments and higher minimum credit scores. The lender may also want to see a lower debt to income (DTI) ratio, indicating that the borrower has minimal existing debt and can handle the financial obligations of being a landlord.
In other instances where the borrower intends to use the home as vacation property that is also rented out part-time, a conventional mortgage may make more sense. With a conventional mortgage, the borrower may be able to make a smaller down payment, and a less-than-perfect credit score won’t necessarily eliminate them from loan eligibility.
Loan Qualifications/Guidelines for Investment Property Loans in Texas:
Investment Property Loan guidelines can vary by product and lender; however, in most cases the borrower will need to be able to show documented proof of income and creditworthiness. Other factors that will determine a borrower’s eligibility for Investment Property Financing can include employment history, projected rental income from the property being financed, amount of other debts and income/other assets (DTI ratio), and FICO score. The specifics of these factors may vary and are subject to change. Please contact us for details and exact lending criteria.
- We can finance up to a total of 10 properties
- Minimum down payment on a purchase is 15%
- Maximum loan to value on a cash out refinance is 75%
- Ability to use projected rent from the subject property to help with qualifying
- We can lend on single-family properties as well as multi -family properties with up to four units.
Why Work With Us?
- Competitive Rates
- Variety of Programs
- Personalized Service
- Experience in the Investment Property Loans Market
- We work with Texas home buyers and homeowners throughout the state.
* Mortgage programs and terms subject to change. Please call 972-591-3097 for more details.