Rental Property Financing in Alabama

A rental home situated in a nice neighborhood — regardless of if it's a SFH, a studio, a duplex, a triplex, or a fourplex — is usually a worthwhile investment for any real estate investor hoping for a consistent monthly income and a secure personal economic future. Even though some individuals choose to use their personal savings to afford their investment homes, many others opt for Alabama rental property loans. Yet, a lousy credit score or the lack of a typical, salaried occupation — like a self-employed person — can make it tough for you to procure traditional types of financing. Also, most banks have an approval process that is long and time-consuming, meaning that a fast closing is extremely difficult. Luckily, there are more methods for getting a mortgage loan for a rental property.

Real estate investors, who are planning to purchase a new investment rental property or seeking to refinance an existing loan, can always approach private lenders for a rental home loan in Alabama. Instead of the individual's income or credit score, these loans, which come with shortened durations of 6 to 36 months and rates starting at 10%, are often determined by the specific property's ability to earn a consistent income, an outside assessment of the property, and sometimes, the person's knowledge of rental property management. What's more, Alabama rental property loans, apart from being easy to qualify for, are additionally fast closing, which allows you to execute contracts on valuable real estate transactions pronto.

One of Island View Private Loan Fund's borrowers included an independent realtor who had been trying to find rental property financing to invest in a single-family home in South Carolina. While she had an amazing credit score and enough working capital to devote towards a 30% down payment, she did not have a strong likelihood of being approved for a regular bank loan, due to the fact she was self-employed. But she didn't want to allow this unbelievable investment opportunity to be squandered. Using the sizeable deposit and favorable rental market analysis, IVPLF had no difficulty granting her a private home loan to help her cash in on this fantastic investment opportunity.

Some real estate investors also refinance an old mortgage for a new one so that they can recuperate the equity within existing investments. For instance, IVPLF had this client, a real estate investor who was the owner of a rental property and had fully paid back the original mortgage on it. He was self-employed and over 30 days late on his credit card payments. He did a cash-out refinance on the place to pay off his credit cards and gave himself a little space to breathe as the new mortgage payment was paid by his rental revenue from the condo.

Determining the best Alabama rental property mortgage lender who recognizes your business needs and the larger context of real estate investing is a vital step to a prosperous purchase decision. Fill out the form or call us, to discuss your property or properties.