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Do you need assistance locating and securing financing for an investment property? We can help connect you with the right professionals depending on your needs. Are network consist of many lending pros who have loan products for flips, buy & hold, commercial, transactional funding, rehabs as well as many other specific investment situations.

Hyde Park Property ValuesConventional Mortgages (Owner Occupied)

The benefit of an owner occupied home loan is the low-down payment requirement: currently loans as low as 3.5%. This can help get you started much sooner, since you don’t need to save up 20%. However, every blessing comes with a curse. While the low down payments the FHA offers are great, the FHA does require an additional payment, called “Private Mortgage Insurance.” This “PMI” insurance protects the lender and is required when the down payment on an FHA loan is less than 20%.

Conventional Mortgages (Investors)

Most traditional conventional mortgages require a minimum of 20% down, but may extend higher to 25-30% for investment properties depending on the lender. Conventional mortgages are the most common type of mortgage used by home buyers and generally provide the lowest interest rates.

203K Loans

The 203K loan is a loan that allows a homeowner to purchase a house that is in need of some rehab work and gives them the ability to finance those repairs or improvements into the loan itself. Like the normal FHA loan, the 203K loan still allows for the low down payment requirement allowed by the FHA (currently just 3.5%). This loan type is also applicable for duplexes, triplexes, and fourplexes, but maintains the same requirement for only being for “owner occupants” and comes with Private Mortgage Insurance demands for loans under 20%.

Hard Money Loans

Hard Money Proof Of Funds “Hard money” is financing that is obtained from private business or individual for the purpose of investing in real estate. While terms and styles change often, Hard Money has several defining characteristics:

  • Loan is primarily based on the value of the property
  • Shorter term lengths (due in 6 – 36 months)
  • Higher than normal interest (8-15%)
  • High loan “points” (fees to get the loan)
  • Many hard money lenders do not require income verification
  • Many hard money lenders don’t require credit references
  • Does not show on your personal credit report
  • Hard money can often fund a deal in just days
  • Hard money lenders understand when the property needs rehab work

Hard money can be beneficial for short term loans and situations, but many investors who have used hard money lenders have been placed in tough situations when the short term loan ran out. Use hard money with caution, making sure you have multiple exit strategies in place before taking out a hard money loan.

Self Directed IRA’s

We speak to investors almost every day who want to invest in real estate in some form or fashion and want to use retirement funds (that probably aren’t earning enough to keep up with inflation) to do this. Once your money is in a retirement account, you need to put it to work. Investing in what you know best via self-directed accounts is one way to accumulate massive amounts of wealth in a relatively short period of time. You can have total control over your retirement and invest in alternative assets outside of the choices provided by your financial advisor.

Commercial Mortgages

Boston Developer LoansWhile most of the above options focus primarily on the residential side of loans, the world of commercial lending may also be viable option for your investing. In fact, if you are looking to buy a property other than a one to four unit residential property, a commercial loan is probably exactly what you’ll be needing. Commercial loans typically have slightly higher interest rates and fees, as well as shorter terms and different qualifying standards. The commercial lender will still look at your income, credit, and other personal financial indicators, but only to gain a picture as to your skills financially. What’s more important in the vast majority of cases is the amount of revenue a property generates.

Do you need assistance locating and securing financing for an investment property? We can help connect you with the right professionals depending on your needs. Are network consist of many lending pros who have loan products for flips, buy & hold, commercial, transactional funding, rehabs as well as many other specific investment situations.

Give us a call at 617-297-8641 or email Willie@MandrellCo.com for questions and assistance with your lending needs.

 

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