3 Tips for Getting a Arizona Rental Property Loan
Ready to jump into the world of real estate investment as a rental property owner? With the housing market crash firmly in our rearview mirrors, now is a great time to do it. Here are three essential tips to help you get started.
In the third quarter of 2018, 93 percent of America’s major metro areas experienced a gain in prices for existing single-family homes. That’s an incredible statistic and it’s proof that the market has recovered and then some. It’s also a sign that investing in real estate is a safer bet again.
If you’re interested in buying a property as a rental, you’ve probably looked into financing options. If so, you know that getting financing these days isn’t as quick or easy as it used to be.
Three Ways to Secure a Arizona Rental Property Loan
- Be a perfect borrower. If you’re going to go through the banks for a good Arizona Rental Property Loan, you’ll need to have the credentials they want. That includes a credit score that’s at least 700 and preferably over 740. They’ll also want to see that you have at least six months of money in your bank account to pay expenses, both investment-related and personal. And, of course, they’ll want you to not have a blemish on your record like a foreclosure or bankruptcy.
- Make a big down payment. If you fall short when it comes to your credit score, you may also be able to secure a bank loan if you have a big chunk of money to put down. If you’ve got 25 percent to 30 percent of the property’s value to put down, that may be enough to get you the funding you need.
- Forget about banks. Believe it or not, banks and credit unions aren’t the only way to get a Arizona Rental Property Loan. Arizona Hard Money Loans are secured with collateral and use private funds, so these types of lenders don’t ask you have a perfect history, a high credit score, or a big down payment. They offer more flexibility and you can have funds in your account within a few weeks.
Can I Qualify for a Residential Arizona Hard Money Loan?
If you don’t fit the narrow profile that big banks want in their borrowers or you need to get funding quickly, a hard money Arizona Rental Property Loan might be perfect for you. Give us a call today to tell us about your investment plans and see how we can help you realize them.
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