Getting Started
Whether you’re an experienced investor, or just starting out, understanding your financing options is critical to ensure your earnings outpace the cost of borrowing. Working with Durand Mortgage Group can make a huge difference between investing a profitable new venture or losing your hard earned money.
Here is a list of items you’ll need to get started:
- Two years of your most recent and complete personal tax returns, including all schedules
- Lease agreement or cash flow analysis for all rental properties owned
- Copies of property deeds and titles for all properties owned
- Most recent mortgage statements for all properties showing loan balances, interest rates and payment histories
- Bank statements showing sufficient reserves, often 6-12 months of mortgage payments for each investment property
- A recent credit report to assess creditworthiness
- A summary of the investor’s entire real estate portfolio, including property values, mortgage balances, rental income, and expenses
- Recent appraisals for the properties being financed or refinanced if required
Special Loan Programs
for Investors
DSCR Loans
Fix and Flip Loans
Blanket Loans
DSCR (Debt Service Coverage Ratio) loans focus on the cash flow generated by the investment property rather than the borrower’s personal income. DSCR loans compare rental income to the mortgage payments.
Fix and flip loans are short term loans designed for investors looking to purchase, renovate, and quickly sell properties. These loans often have higher interest rates.
These loans allow investors to finance multiple properties under a single mortgage. This is beneficial for simplifying management and potentially reducing costs.
Portfolio Loans
Commercial Loans
Hard Money Loans
Portfolio loans are custom loans for investors with multiple properties, allowing them to consolidate financing or obtain terms better suited to their needs.
For investors dealing with multi-family or mixed-use properties, commercial loans offer higher loan amounts and specialized terms.
Hard money loans are short-term, high-interest loans that are asset-based and typically used by investors needing quick financing, often for rehabs or bridge financing.
DSCR Loans
DSCR (Debt Service Coverage Ratio) loans focus on the cash flow generated by the investment property rather than the borrower’s personal income. DSCR loans compare rental income to the mortgage payments.
Fix and Flip Loans
Fix and flip loans are short term loans designed for investors looking to purchase, renovate, and quickly sell properties. These loans often have higher interest rates.
Blanket Loans
These loans allow investors to finance multiple properties under a single mortgage. This is beneficial for simplifying management and potentially reducing costs.
Portfolio Loans
Portfolio loans are custom loans for investors with multiple properties, allowing them to consolidate financing or obtain terms better suited to their needs.
Commercial Loans
For investors dealing with multi-family or mixed-use properties, commercial loans offer higher loan amounts and specialized terms.
Hard Money Loans
Hard money loans are short-term, high-interest loans that are asset-based and typically used by investors needing quick financing, often for rehabs or bridge financing.
Fannie Mae and Freddie Mac Investment Property Loans
Conventional loans that allow for the investment property purchases, typically with a requirement of 15-25% down payment depending on the property type.
Keeping Your Finances
in Order
Document All Income Sources
Ensure that all rental income and other investment income are thoroughly documented. This will be a key factor in loan approval.
Keep an Updated Real Estate Portfolio
A well-maintained portfolio summary makes it easier for lender to assess your financial health and investment experience.
Don't Over-Leverage
Be cautious of over-leveraging properties, as this can increase risk and reduce the likelihood of loan approval.
Consider Long-Term Financial Planning
Align your financing with long-term investment goals, whether it’s cash flow, appreciation, or equity building.
Don't Neglect Cash Reserves
Maintaining sufficient reserves is crucial for both loan approval and financial security, especially if rental income fluctuates.