Unlike most residential homes, an investment property is one that is not the owner’s primary residence, and instead is used to generate profits. If it is primarily used for revenue, a property becomes considered an investment property.
Several types of properties fall into this category: residential rental properties, commercial properties, and properties purchased with the intention to renovate it and later flip it to make a profit.
Yes. In comparison to homes purchased as the primary residence, taking out a loan for an investment properties often comes with higher interest rates and a larger down payment. It can be difficult to receive a loan on an investment property, particularly in Orange County, Los Angeles, San Diego and Riverside counties, so the borrower must be prepared to put down at least 20% of the home price as a down payment and be able to prove good credit scores.
Be able to make a sizable down payment. The more you can initially pay for a down payment, the better your interest rates will be over the course of the loan. In addition, the higher your credit score, the better interest rates you’ll receive long-term.
It is generally more difficult to qualify for a loan on investment property than it is for a primary residence in Orange County, Los Angeles, San Diego and Riverside counties. Make sure you do your research and choose a property wisely before going through the process of applying for a loan.
It is also recommended to avoid investing in any property if you have any lingering debt — be it from remaining college loans or medical bills — or you can anticipate a large expense coming quickly. Lenders want to know that you have the funds to pay off the loan, and that you will continue to do so for the years on the loan.
Contact Rene Ruiz today for any interest in becoming involved with investment property or investment property loans!
Clear communication, a smooth process and great results. I felt well-supported and in good hands throughout. Being self-employed, obtaining any financing is a challenging process these days. However, my lender discussed a strategy and options for which I could prepare. The process went smoothly and I received guidance and support throughout. All questions and concerns were answered promptly and I was always treated with respect and courtesy. The loan exceeded expectations and fees were low.Sobrien la
Everything was very smooth and we feel the staff went above and beyond to obtain our loan!!!! Documents were presented to us in a very understandable way as well.newjanam
This is the second time I have refinanced with Rene. Both times Rene had worked relentlessly to help find me the best rate possible. This time he has actually exceeded my financial goal! He is pleasant, precise and explains everything clearly. He answers any question you might have in a timely manner if not immediately. I have recommended him to friends in the past and am happy to use this forum to recommend him to others!user746881
Rene was thorough, professional, knowledgeable and always willing to answer questions. He walked us through every step and we couldn’t be more pleased with his services. Recommend without hesitation.Jeff Frohner
This was my 2nd refi with Rene on my new home purchase within the past year. The goal was to lower the payment and get a low 4% rate on our loan. The process was quite easy and i would recommend Rene to a family or friend any time. Outstanding attention to detail and always quick to respond to my requests. Overall, Rene and his team met our refinancing needs very well! The entire process took approximately 3-4 weeks and we had a decent lender refund also.mmasero99
Rene was very helpful. He went over details and insisted we look at other loan options to make sure we had the information we needed. We were able to refi very quickly and are very happy with our new loan. The use of the internet made the sending and receiving necessary documents a breeze. Rene and his team were prompt helpful and fun to work with. I definitely recommend them for your Mortgage needs.user8001030
I had worked with Rene for the second time in refinancing my property. Rene is very knowlegable, helpful and responsive. He explains every detail of the refinance process. His whole team is awesome. I will recommend Rene to my friends and to anybody who is interested in refinancing their properties.koriyente
Rene was informative and laid out all of my options during my initial call about my refinance. He was willing to answer all of my questions & he wasn’t pushy.sbucher288
Best experience I have ever had in refinancing, Rene was all of the above and then some!!!. Always a pleasure working people as pleasant, helpful and knowledaable as Rene!gritone65
My wife and I purchased our home a little over two years ago and after a horrible experience we were hesitant to go through the process again. However our experience with Rene Ruiz was amazing! He was very clear and concise about how the process would take place. Most importantly we received what was quoted during our initial conversation! This refi went smooth and couldn’t have asked for a better result. Thank youzuser20140603000717611