California Investment Property Loans
- 5-Star Rated Mortgage Broker
- Rental Property Mortgage Programs
- Portfolio Rental Loans & Refinancing
- Residential and Commercial Loans
- Open for Partnerships with Borrowers & Realtors
- Office located in Los Angeles
What type of property are you refinancing?
Single Family
Multifamily
Condominium
Townhouse
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
How can we help you today?
Home Purchase
Refinance
What type of property are you purchasing?
Single Family
Multifamily
Condominium
Townhouse
Are you a first-time home buyer?
Yes
No
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
Final Step
By clicking "Get My Quote" you certify that you read and completely agree with the Privacy Policy
Summary
| Description | Information | Quantity | Price |
|---|---|---|---|
| Discount : | |||
| Total : | |||
Why Invest in California Real Estate
Looking for a location for your investment property purchase? Then consider California. This is the most rapidly developing real estate market. The most attractive investment property cities are Los Angeles, Ventura, Pasadena, Santa Barbara, Big Bear Lake, Riverside, Long Beach, Huntington Beach, Oakland, San Jose, and Santa Clara. We will help you decide on real estate investment in California and will gladly assist you during this process.
New Opportunities
Employment opportunities are growing, more people are moving in and are looking for a place to live.
Always in Trend
Reasonable Regulations
Best Price-to-Rent
Invest in Real Estate Today
Make your dream come true! Do you have any questions so far?
Call us for a free consultation
What is a Private Investor Loan?
If you want to feel secure about your future, investments in real estate is a great option. Buying rental properties in California is very rewarding and will bring you dividends for years and years.
If you do your research and check out the available options, you can make great investments and have a cash flow that will support you and your family and help you grow your equity.
With inflation, rent prices will rise while your mortgage payments will stay the same. What this means is that your cash flow will increase. And when you pay off your loan, your cash flow will grow even more.
Have Questions? Reach us out:
Hours: Monday-Friday 10:00 AM - 5:00 PM
In-Person at LA Office
13317 Ventura Blvd #H, Sherman Oaks, CA 91423
Cell-phone
M-F 10 AM-5 PM (PST)
On-line
E-mail: contact@idmortgagebroker.com
Skype: click to join
Types of Loans for Investors
Conventional Home Loans
If you want to purchase a home as a rental property – a conventional fixed-rate home loan is your best option. You can estimate your rental income and decide whether you want to pay off a 30, 20, 15 or 10 years loan, and which one will be most affordable. Naturally, the faster you pay off your mortgage, the quicker you will get pure profit on your rental property. Learn more.
Hard Money Loans
Another option is a private money loan or hard money loan on your property. Our company offers hard money loans for real estate investors that are secured by a property asset and can guarantee fast and stress-free closing. These types of bridge loans are given for a short period to finance short-term investment projects, like rehab, fix and flip or construction. They usually mature at 12, 24, or 36 months. Learn more.
Mortgage Refinance
If you want to change a loan program and thus lower your interest rate or down payment, then refinancing from an adjustable to a fixed rate is for you. You can also do the cash-out refinance and get money for home improvements.
How to Get an Investment Property Loan?
Here are the steps you need to take to get a real estate investor loan in California:
Step 1 - Look for lenders that are investor-friendly
Finding the right lender is a big part of your investment plan, so don’t take this task lightly. The investment property loan interest rate can be very different from one lender to the next, so you want to make sure that you have the best deals. We are happy to help you with your investment project. Since there are many loan programs available for investors, you need to consider your options carefully.
Step 2 - Make sure you have enough finances
Lenders will require a down payment and six-month liquid reserves. If you own a primary residence, then you need to have money in the bank both for your current home and your future rental.
Step 3 - Apply for a loan
When you have selected the loan program that you feel comfortable with, you need to fill out a loan application. Also, you will have to provide a lender with your personal information such as your name, address, employment information, and Social Security number. At this stage, you should also make estimations about your monthly payment so you can plan accordingly.
Step 4 - Verification of your application
The lender will check your credit score and verify all the information you provided in your application. The lender will also evaluate your income to make sure you can pay both for your primary house and investment property.
Step 5 - Making a down payment
With investment properties, you can put as low as 15% down, but we highly recommend to put 25%, to avoid higher interest rates and payments. In some cases with new alternative programs available nowadays, lenders will require even 30%-35%.
Apply for an Investment Property Loan in California
Getting a mortgage for an investment property can be tricky; that is why we recommend consulting with our experienced professionals before rushing into your purchase of any rental property in California.
We will help you save not only money but time and lots of hustle while you are looking around for the best lender and wondering whether your paperwork is intact.
California Investment Property Loans FAQ
What distinguishes an investment property loan from a primary residence mortgage?
An investment property loan is a mortgage option for property to be let out or sold for a gain. These investment property loans demand higher down payments, usually 20-30%, and have stricter eligibility criteria than primary residence mortgages. They will have higher interest rates, reflecting the increased risk associated with non-owner-occupied properties.
How much of a down payment is needed for a California investment property loan?
Most lenders require at least 20% down for investment properties in California. Some may require 25-30%, especially for multi-unit investment properties. Sometimes, the bigger your down payment, the better your interest rate and terms are, lowering your long-term borrowing costs.
What loan options are available for financing investment properties?
Common financing options include:
- Conventional loans: Conventional loans are the most common financing option. They usually require a high score and the largest down payment and offer competitive rates.
- FHA loans: Although FHA loans are primarily used for primary residences, there are some multi-unit properties where the owner can occupy and finance one unit.
- Portfolio loans: These are extended by individual lenders who retain ownership of the loan in their portfolio instead of immediately selling it on the secondary market. This can sometimes give more flexibility with the terms.
- Hard money loans: These loans can be used for immediate purchases and rehabs, and they usually carry higher rates.
What credit score is required to qualify for an investment property loan in California?
The best rates and terms may require a credit score of 700 or above. Some may accept credit scores as low as 620, but rates and conditions can increase. You can make things easier by building good credit in advance and applying for an offer that shows an ‘Excellent’ chance of approval.
Can I include rental income when applying for an investment property loan?
Yes, most of the time, lenders consider projected rent coming in. They might require a rental appraisal or a rental history from other properties you own of how much you can pay the mortgage. This income addition will qualify you better, giving you a better debt-to-income ratio.
Is it advisable to form an LLC for purchasing investment properties?
These options create liability protection by separating personal assets from the investment. However, they can make financing difficult since lenders may require personal guarantees on LLC loans. You are advised to discuss the pros and cons of such a setup related to your situation with legal and financial advisors.
How do interest rates for investment property loans compare to primary residence loans?
This is because investment property loans are seen as carrying a little more risk; they often demand higher interest rates. Lenders usually charge 0.5% to 1% more in interest than compared to loans made for owner-occupied property. But if the credit score is high, with a bigger down payment and coupled with a good rental history, that may support the best possible rates.
What are common challenges in obtaining California investment property loans?
They include more rigid credit and down payment requirements, higher interest rates, and sound rental income plans. How to overcome these:
- Improve your credit score before applying.
- Save for a big down payment.
- Research market trends and hence make correct forecasts of rental income.
It is wise to work with a mortgage broker or financial advisor to find the best loan product that fits your investment strategy.
OUR BUSINESS LOCATION
FOLLOW US
