- BUY A
- SOUTH STATE
If you’re planning on buying an investment property, you’ll need solid financing help along with a variety of loan options. The mortgage professionals at Mortgage Options are ready to help you make your investment property dreams become reality.
Using Your Current Home to Finance an Investment Property
Home equity credit line. Your current home might be a strong resource for purchasing additional property. It depends on whether or not you have sufficient equity in your home. If so, you might be able to purchase your investment property without another first mortgage. How? By getting a home equity line of credit, then using that credit to either put a down payment on the new property or pay for it outright.
It’s a serious decision. Remember that in using the equity of your primary residence, your home becomes the security on the new mortgage. This is critically important when you’re using it to secure investment property, which is considered a higher risk. So be sure to give it careful consideration before making the decision.
Creating a Financial Plan
•Know your credit requirements and borrowing power
•Understand and be objective about your credit history and ability to pay your loan.
•Plan to get your credit squared away if required and be sure to set up a budget
•Estimate how much you can spend
•Compute your monthly payment
•Calculate the total amount you’ll need at closing. It’s the combination of your down payment
and closing costs.
Setting a Timeline
•Determine when you want to purchase the investment property. Consider your credit,
savings and cash flow when coming up with a timeline.
Buying an investment property might not be as hard as you’ve imagined. The key thing to remember is that you’ll probably secure it with your primary residence.
To find out more about financing an investment property, call Mortgage Options today: (803) 732-5787 or Toll Free at (866) 456-5511.
Refinancing your home to buy Investment Property?