Securing the right financial support is not just crucial, but it’s also a source of security and stability in real estate investment. Long-term rental loans provide a robust foundation for investors looking to build or expand their rental property portfolios. Designed explicitly for non-owner-occupied properties, these loans offer the flexibility and financial backing needed to succeed in the competitive rental market, giving you the peace of mind you need in your investment journey.
Long-term rental loans are financial products tailored for real estate investors aiming to purchase or refinance rental properties. These loans are ideal for single-family residences, townhomes, condominiums, and multi-unit buildings up to four units. American Financial Lending offers these loans for 30 or 40 years, catering to seasoned and novice investors.
Flexibility: Choose from 30 or 40-year terms with a significant interest-only period, allowing for better financial planning and management.
Accessibility: The minimal requirement of a 620+ credit score makes these loans accessible to a broader range of investors.
No Income Verification: Investors benefit from the no income or employment verification process. This means we do not require you to provide proof of your income or employment status when applying for the loan. This simplifies the application process and makes it more accessible to a broader range of investors.
Capacity Building: Our loans are about more than just financing. They are about building your capacity as an investor. They are ideal for investors looking to grow their portfolios without the immediate pressure of full amortization, giving you the confidence to take your investment journey to the next level.
Market Entry: Opens opportunities for foreign nationals and novice investors, providing a gateway to enter the U.S. real estate market.
Property Condition: To qualify, a property must be in fair condition. This means it should be structurally sound, with no major issues affecting its livability or market value. For example, a property with a leaky roof or a faulty electrical system may not qualify. You may need to make preliminary investments for upgrades or repairs before financing.
Market Dependency: Loan terms and rates are influenced by current market conditions and the investor’s creditworthiness, necessitating a thorough market analysis and credit preparation.
Prepayment Penalty: A minimum three-year prepayment penalty applies. If you decide to pay off your loan in full within the first three years, you will incur a penalty. However, this penalty can be bought out, but it requires upfront capital.
Vacancy Risks: Properties can be financed regardless of occupancy status. However, vacant properties might pose additional financial risks. During periods without rental income, you will still need to cover the loan payments and any other expenses related to the property. It’s crucial to have a plan in place to mitigate these risks.
Long-term rental loans from American Financial Lending offer a strategic advantage for real estate investors. By understanding these loans’ essential features, benefits, and considerations, investors can make informed decisions that align with their investment goals and financial capabilities. Whether you are a seasoned investor looking to expand or a newcomer eager to make your mark, long-term rental loans provide the necessary tools to navigate the complexities of the rental market and achieve lasting success.
We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.