Investment Property Mortgage Loans in Ohio
Here at Cleveland Ohio Mortgage, we love real estate investors! One of our best niches is real estate investor loans. We understand that new and seasoned real estate investors want to deal with a broker that knows not only investment property loans, but also what the goals of a real estate investor are. It is very important that the loan officer understands what the investor plans on doing with the property in the future in order to structure a loan properly. Having a good investment mortgage broker can save a lot of money and increase profits. For example, if an investor is buying a property and plans on rehabbing the home and then putting someone in the property immediately on a lease/option contract for 1 year, it would be very smart for the loan officer to make their fee for the home loan in yield spread (from selling a higher rate) and charge less or none up front. The reason for this is because the investor will not pay more in interest in 12 months than he/she would have if they were charged points up front. This is only one example of how having a smart mortgage broker that is familiar with investment property home loans can save thousands of dollars per deal.
With the real estate market as bad as it is right now, there are not a whole lot of options for investment property mortgage loans. Six months ago lenders were offering 100% on investment properties. Currently, there are very few, if any, lenders that will go over 90% LTV on investment loans. If they do offer over 90% LTV, the interest rates are outrageous.
To most the real estate market is not very good right now, but I do believe that real estate investors in certain areas will disagree. Houses are selling much lower due to an overwhelming overstock of homes on the market right now. This gives investors opportunities to grab houses much cheaper. It is also a great time for any investors doing rent to own on their houses. They can grab the homes cheap, put someone in the home for 12-24 months until the market turns around, and then sell them off for more than they would have with the bad market depending on how the rent to own contract is structured.
Investors looking for purchase loans, rehab loans, or even refinances, please fill out a mortgage application or feel free to give us a call to discuss any deal in mind.