How to Get an Investment Loan for Real Estate
When you want to know how to get an investment loan for real estate, Renovo can help. There are so many financing options available, and navigating those options for how to get a loan for real estate investment is where we shine. We have a few suggestions for making sure the real estate loan process goes smoothly, and you’re getting the best possible loan terms for financing an investment property.
Renovo can work with you to connect you with real estate investors, but it’s always a good idea to be the most attractive applicant.
- Bring up your credit score
- Organize your income and employment verification
- Pay down your debts
- Research the cash flow opportunities for your target property
- Look at different lending options
Credit scores range between 300 and 850, with higher scores being preferable. Lenders will check your credit score when you’re applying for most loans to ensure they make a wise decision when loaning you money for your real estate investment. The higher your credit score, the less likely you’ll be asked for a large down-payment and your interest rates will be manageable. Ideally, you want your credit score to be higher than 740.
Another thing lenders look at when approving your for a loan is your debt-to-income ratio. By already having a couple years’ worth of tax returns, W-2s, 1099s, or proof of any other steady income, you’ll cut down on the time it takes to get approved. We also recommend having the contact information for your company’s HR department for employment verification, and a couple of recent pay stubs ready to go.
Paying down your debts significantly improves your debt-to-income ratio. If your credit score is great, having a lower debt-to-income ratio can help with your interest rates and loan terms. You’ll also raise your credit score by paying down debts.
If you want to work with asset-based lenders, the loan terms will rely heavily on the property itself. You’ll need to make sure that the cash flow from the property will be enough to pay the mortgage, taxes, insurance, and any necessary maintenance of the property.
Depending on what you want to accomplish with an investment loan for real estate, you may be eligible for different lending options including:
- Rehab Loans
- Rental Property Loans
- Multi-Family Loans
- New Construction Loans
Renovo can work with you to connect you with the right lender, based on your project.
Renovo’s process has been designed around the needs and goals of investors. By choosing to focus on you, we’re able to secure the best possible funding for your real estate investment. Our closing team works with our clients leading up to their closings and providing the guidance and assurance needed to close deals quickly - it’s why we’re frequently recognized for going above and beyond. We have a dedicated team for each project. Most importantly, when we say we'll do something, we mean it.