What is the Best Type of Loan if You are Looking to Expand your Real Estate Investment Portfolio?

I'm Heather

I am SUPER passionate about real estate, investing and helping other reach their goals. I am a Mortgage Loan Originator, Director, Wife, and Mom, so have a unique approach and understanding of my client's needs and love making the market understandable. 

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If you’re looking to expand your real estate investment portfolio, you’re probably wondering what is the best type of loan to get. The answer to this question depends on a number of factors, including your credit score, the amount of money you’re looking to borrow, and the types of properties you’re interested in. In this blog post, we’ll explore the different types of loans available and help you decide which one is right for you.

There are a number of different types of loans available if you are looking to expand your real estate investment portfolio. Each type of loan has its own set of benefits and drawbacks, so it is important to carefully consider all of your options before making a decision.

Types of Loans – Some of the most popular types of loans for real estate investors include conventional loans, DSCR loans (Debt Service Coverage Ratio), and Bank Statement loans. Conventional loans are typically the best option for investors who have good credit and can put down a large down payment. These other types of loans are ideal for those that are self-employed or looking to use creative financing to keep their options open without having to use standard income verification.

What is a DSCR Loan? A DSCR loan is a great option for investors who have 15-20% down but do not want to state their income as a means of qualifying for the property. A DSCR loan can be used for up to 4 units and the rental income is what is assessed in order to qualify for the loan. As long as the rental income is equal or more than the monthly mortgage payment and you have a credit score of 620 or above and you have the 15-20% down (amount down varies by investment experience level) we can get you into your next investment property!

What is a Bank Statement Loan? A Bank Statement program is a loan option for eligible self-employed borrowers to purchase or refinance. This program allows personal or business bank statements to calculate income without requiring tax returns. Some of the features of a bank statement loan are

  • Available for purchase and cash-out or rate-term refinance
  • Primary, second home, or investment properties
    • Single family, townhomes, or condos
  • 12 or 24 months business or personal bank statement submissions
    • Additional documentation will be required for qualifying income and loan approval
  • 1099 income option available
  • Non-warrantable condos allowed

No matter which type of loan you choose, it is important to remember that real estate investing is a long-term commitment. Be sure to carefully consider all of your options before making a commitment and be sure to work with seasoned professionals. We are well versed in the process and would love to help guide you through the process toward your real estate investment goals!

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