Work with the top commercial mortgage broker in the industry, offering highly competitive financing for all income-producing real estate assets nationwide. Whether you are looking to acquire, improve, cash out, or refinance, our lenders will have the most competitive rates and terms.
How Investment Property Loans Work
Investment property loans are often used by people who want to earn money. The person who takes out the loan is called the borrower. The person or company thing gives the loan is called a lender. Sometimes, there might be more than one lender, but they will work together closely to decide what happens with the money that was borrowed (the principal).
When you get a loan for investment property, the money that is earned from the rental property (the rent) or other income goes to paying back the principal, as well as interest on the loan.
There are two main types of loans for investment property in the USA: recourse and non-recourse. A recourse loan is a type of bank loan where the borrower is responsible for any shortfall if the sale of the property doesn’t cover what was owed on the mortgage or in the case of default or other events. This means that if the lender sells the property for less than what was owed on the mortgage, then the borrower is still responsible for making up that difference. A non-recourse loan, in contrast, is a type of bank loan where if there’s ever a shortfall, it falls entirely on the lender.
Types of Rental Property Loans We Provide
- Multifamily apartment buildings, FHA
- Office (read more), retail, industrial, mobile home parks, self-storage
- Hotels (https://cloptoncapital.com/hotel-financing/)
- Secured Acquisitions, Refinances, Cash-outs, Construction
- Fannie Mae, Freddie Mac
- Fixed-rate and Floating rate
- Non-recourse (more info) and Recourse CRE loans
- CMBS (more info here)
- 2nd mortgages, preferred equity investment, & mezzanine loans/financing
If it’s real-time, daily-updated commercial mortgage loan rates you’re after simply go to the menu at the footer of our page.
Also, you should know we are coming to you from a practical standpoint when it comes to commercial real estate financing: we invest ourselves, so we have a true empathy for your concerns from every possible angle.
Vacation Investment Property
If you’re thinking about investing in a vacation rental property but don’t know where to start, we can help.
You also have several options for repayment terms, including a 10 year fixed term or an adjustable rate mortgage with rates from 3-6% APR. If you need more time to repay your loan, there is even a 15 year option available at 4%. However long you decide on, Clopton promises no hidden fees or interest charges!
College Investment Property
If you’re in the market for a college investment property, working with a real estate professional is the best option. It’s important to remember that not all loans are created equal; therefore, choosing the right type of loan takes some research. The type of loan that would be best for a college investment property would be either an investment property loan or a rental property loan.
College investment properties are considered more risky than rental properties because they require more money up front and can never be sold on the open market if you want to get your initial investment back. If you do go this route, make sure to get at least 20% down and make calculated decisions about debt and interest rates (we’ll talk about these later).
Long-Terms And Short-Terms Rental Property
Looking for a loan for rental propertY? If you want more control over your investing, investing in rental property may be for you— and a loan for rental property can help you achieve it. Rental property loans can help finance the purchase or construction of a rental building or home. You can also take advantage of tax benefits when you invest in real estate through an investment program like Clopton Capital’s Property Investment Program (PIP). Rental income will generate monthly cash flow while appreciating asset values provide long-term wealth protection and growth opportunities.
How To Apply For An Investment Property Loan
If you’re looking for investment property loans, it can be difficult to know where to start. This article will help you get started on the process of applying for a loan for investment property that’s right for your needs. It’ll also help answer some questions about what to do next after applying, and how much money you might need in order to qualify.
Here are five tips when considering an investment property loan:
- Make sure all documentation is ready before beginning the application process.
- Read over any potential terms carefully; don’t let anyone rush or stop you from doing so!
- Be prepared with proof of income (if needed).
- Find out if closing costs are included or not.
- Know ahead of time whether there are pre-payment penalties associated
Wondering about investment property loan requirements? The investment property loans requirements, or requirements for getting an investment property loan, can vary depending on the lender. However, most lenders will require that you have a good credit score, a low debt-to-income ratio, and a down payment of at least 20%.
Who Is Eligible to Get The Financing
You can get approved with as little as 20% down payment if you have a good credit rating and enough income level. Your rental property will not need to meet any of these criteria in order for you to qualify for this type of mortgage, but it must meet community guidelines and building requirements. There are no limits on how much your monthly rent should or cannot be when qualifying for a real estate rental loan through Clopton Capital. The interest rates range from prime plus 0.75% depending upon your qualifications and terms up to 300 months, which equates out at around 24 years based on average market conditions today! In general, a lot of these numbers depend on the loan process, qualifying standards, and whether you’re including an additional property in your loan. Other elements, such as assets, income, debt payment capability, and projected revenue, can determine whether you’ll be eligible for financing.
Rates to Expect
Rates for investment property loans work similarly to other types of loans. They change depending on the type of investment property that you’re buying and the credit score that’s associated with that purchase. The higher the credit score, the lower your interest rate will be (and vice versa). If your credit score is 500 or less, then your rate will be around 13%. If your credit score is 700+, then it’ll be around 5%.
Why Get Loans for Investment Property at Clopton Capital
We take the time to understand the needs of each of our real estate investors to provide them with the perfect real estate mortgage for their needs. We’re more than a banking business – we’re a people business. We believe that business banking is built on trusted relationships. To us, you’re more than the value of your investment property or the figures on your mortgage application.
If this resonates with you, contacting us is easy. Start your loan application by calling us today at 866-647-1650 to speak directly to a Clopton Capital Loan Officer or simply fill out the “Contact us” form. Either way, you will soon be on the road to quickly and precisely knowing your options in line with your financial needs.
Here are some other reasons to choose Clopton Capital.
No Max Amount For Portfolios
At Clopton Capital, we believe that everyone should have the opportunity to invest in real estate. That’s why we offer no max portfolio amounts for investment property loans. This means that you can borrow as much money as you need to purchase or refinance an investment property.
Nationwide Lending Areas
If you’re looking for a dependable investment property loan, Clopton Capital is here to help. We are a nationwide lender with all the resources you need to get your investment property financed quickly and easily. We offer competitive rates and terms, and we can tailor a loan package to fit your specific needs.
So whether you’re looking to purchase a new investment property or refinance an existing one, Clopton Capital is the perfect partner for you. Contact us today to get started.
Low Interest Rates
If you’re interested in purchasing an investment property, Clopton Capital can help! We offer low interest rates for investment property loans, so you can get the funding you need to buy your dream property. Plus, our team of experienced professionals will work with you every step of the way to make the process as smooth and easy as possible.
Fixed Fees And Prices
We offer fixed fees and prices, so you can budget your costs accurately. We also have a wide range of loan products to choose from, so you can find the perfect loan for your needs.
Contact Us About Loans For Property Investment Now
Clopton Capital is the most trusted nationwide source for investment loans for real estate. Not only to we offer access to an incredibly wide network of lenders, but we take the time to understand your unique needs and financial situation and put you in the best position to qualify and succeed with your investment.
Investment Property Loans FAQ
Have questions about investment property loans? Here are some of the most common investment property loan questions we receive and their answers.
What Is A Good Investment Property Interest Rate?
Currently, the interest rates for investment loans for real estate are around 5%. This is a great rate for those looking to invest in a property. Keep in mind that the interest rate may change, so be sure to check with a lender to get the most up-to-date information.
Which Types Of Property Can I Buy With Property Loans?
Loans for investment property can be used for the purchase of commercial, industrial, and multi-family residential properties.
The main difference between an investment property loan and a residential one is that the former requires more cash down. By contrast, it’s easier to qualify for loans on owner-occupied homes with only 20% or even less required upfront.
What Kinds Of Rental Properties Are Good Investments?
It’s often wise to invest in duplexes and triplexes because they provide the fastest return on investment (ROI). The ROI can be as high as 50% annually. Houses also make for good investments, but they tend to be more expensive and take longer to sell, so rent houses out rather than buy them. Conventional houses, purchased with conventional loans generally, are best for holding onto for long periods of time because their low down-payment rates make them easier for people without much income.
When searching for a property to invest in, always look for areas that are growing. You can also ask your real estate agent about developing trends in the area where you’re interested in investing. Another thing to take into account is how much money you’ll need up front. Many people mistakenly think that all investments require a lot of money down, but this isn’t always true. In fact, there are some lenders who will give you an investment property loan with only three percent down. So if you have been thinking about investing in real estate, now may be the perfect time!