INVESTING
Financing Options for Investment Property
Organize the questions that help a lender evaluate your property and financing needs.
Last reviewed:01
Describe the property and intended use
Tell the lender whether you plan to live in the property, rent it out, or purchase multiple units. Investment-property financing has its own eligibility requirements; do not assume a primary-home loan applies.
02
Ask which loan structures are available
Ask lenders which products fit the property, borrower, and intended use. Request explanations of fixed or adjustable rates, repayment periods, and any large payment due at maturity. Availability depends on the lender and program.
03
Discuss cash requirements and income
Ask about the down payment, closing funds, required reserves, and how rental income is evaluated. Bring accurate income, debt, and property information. Projected rent is an assumption, not assured money for a loan payment.
04
Compare the complete terms
Record each proposal’s rate, fees, payment schedule, reserves, and any prepayment restrictions. Ask which documents explain those terms. Compare the effect on your cash flow and have a qualified lender explain conditions before proceeding.
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