Real estate investment can be very lucrative, many are wondering if recent changes to the market will help them take advantage. Many buyers have non-traditional sources of income and will not qualify for a traditional mortgage program, investment loans are a good solution. Streamlined investment property lenders close deal quickly and make documentation easy. During the recent economic crisis, Professional Mortgage Solutions desires to help investors find great resources for property loans. Contact our staff today in Rego Park, NY for details.
Changes for Applying to an Investment Property Loan in COVID-19
Applying for an investment loan has always been different from the process of securing a traditional loan. Borrowers have always needed documented financials to qualify. However, due to instability in the market, many need higher credit scores and financial strength. Investment property loans are for people who can show ability to pay through other means than employment income.
When you go to qualify, a variety of documents will be reviewed by underwriters to calculate your average monthly payment and cash flow. More recently lenders are hoping to see investors that have a large amount of cash to put a down payment to face less risk. Recent commercial programs for multi-unit properties have added more scrutiny to ensuring projects are viable given the instability of rental payments during COVID-19.
Ensuring Your Property is a Worth While Investment in COVID-19
Many other investors and entrepreneurs will need to use recent bank statements to show income. For this reason, you want to ensure you buy and own properties that are generating good revenue. Below is a helpful list of tips to ensure you make a good choice:
- Ensure that demand for housing in the area is still strong.
- Check how well local businesses and the economy are doing, use recent data.
- Check whether tenants are paying rent in the area, and how far behind some rents are falling.
- Check whether you can secure decent rates, some investors are securing loans in the 5% range.
- Buy in areas that had strong housing markets prior to COVID-19.
- Buy in areas with markets that had consistent, stable growth.
- Check how vulnerable local jobs in the area remain.
- Follow current real estate research to track the hottest markets.
Professional Mortgage Solutions is standing by to help you find the best lenders and properties to work with. Certain areas see prices falling, get ready to purchase an investment property, but be sure it is in a good area to fix and flip. Be sure to follow recent trends in approval before assembling any financials to be reviewed. Finding a home in the Rego Park, NY has rarely ever been easier. We are here to show you all the hot new properties coming on the market.