Investing in Property With Brighter Finance
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Investing in property is an excellent way to maximize your returns with little initial investment. You can easily get a mortgage for investment properties using loan programs and low interest rates. Learn more about the benefits of investing in property and how to get the best loan possible for your situation. Brighter Finance was founded by Marcus Roberts, who is not your typical mortgage broker. His expertise has earned him recognition in Forbes, Business Insider, Huffington Post, SBS, and other media outlets. He has over 20 years of experience in the banking industry, and enjoys helping clients secure property and investment loans.
Brighter Finance - Find Out What Loan Programs Are Available To You
When investing in property, there are several loan programs that are available to you. Depending on the amount of money you plan to borrow, you can secure a home equity line of credit (HELOC). A jumbo loan is a large loan that allows you to borrow millions of dollars. However, you must be financially sound and have a large down payment.
The typical investment property loan requires a 20% down payment, but some programs allow you to apply for loans that require no money down. However, you must prove that you plan to live in the property for at least one year and that your income is at or below the median income of the area. Both kinds of loans will appear on your personal credit report, and you should understand the impact they have on your credit history.
Government-backed loan programs are another way to finance investment property. For example, you can obtain an FHA or VA loan to purchase a multifamily dwelling. You'll need to live in one unit, but the other units are for rent. However, most people buying investment property will turn to mainstream mortgage lenders, such as banks. Most banks will ask you about your goals for investing in property before providing you with a loan.
Brighter Finance - Find Out What Rates Are Available To You
There are several different types of rates you can apply for when investing in property. Your cap rate will depend on where you plan to purchase a property and how much return you're looking for. For example, if you're buying a commercial property in a high-demand area, you might choose a cap rate of four percent. On the other hand, if you're looking for a more conservative investment, you might want to aim for a cap rate of ten percent. Either way, earning 4% to ten percent a year is a reasonable range of return.