“Can I take out a mortgage for rental property?” The answer to this question is yes. However, there are some differences between conventional and rental property mortgages.
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Even if you don’t plan to live on your property, a mortgage is a secure and approachable method to buy a house. In today’s article, we’ll discuss how to take a mortgage for rental property from Regions.
Mortgage for rental property: how does it work
Conventional mortgages and jumbo loans are the best mortgage options for rental properties. You can access the equity to purchase a new property if you own a home. Equity is the current value of your home minus your mortgage balance.
The difference between a mortgage for a living property and a mortgage for a rental property is the rates and fees. If you want a home loan to buy a rental property, the down payment is often higher than the mortgage rate.
Furthermore, you’ll have less time to finish the mortgage payment.
Requirements to get a mortgage for rental property
There is a list of requirements to be eligible for a mortgage for rental property. The criteria needed is a way for the lender to ensure the applicants can pay for the loan. The requirements may include:
Credit Score
A high credit score is essential for your mortgage to be approved. The recommended minimum is 620; however, the higher your credit score, the greater the chances of being approved.
Down Payment
It is an initial amount that every customer pays when taking out a mortgage. Generally, the down payment charged is 15% to 20% of the total amount. However, for mortgages for rental property, this value may be higher.
Debt-to-income-ratio
The debt-to-income ratio calculates how much you earn and your debt. This number shows financial health, or the lack thereof, in the case of people who spend more than they earn.
Regions Mortgage
Regions Mortgage offers multiple loan options, and customers can borrow them. The lender offers the following mortgage options:
- Conventional loans – which is a great option for rental properties;
- FHA loans;
- Fixed-rate loans;
- Adjustable-rate loans;
- VA loans;
- Construction-to-permanent loans;
- Renovation and repair loans;
- Mortgage refinance loans;
- USDA loans;
- Home equity loans;
- Home equity lines of credit;
The lender has a good reputation, and you can apply from the comfort of your home by visiting the official website. You can also check your application status and send documents online.
Where the Regions Mortgage are available
Despite being known for its customizable and affordable mortgage options, Regions is only available in 15 states of the U.S. Check them:
- Alabama
- Arkansas
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Mississippi
- Missouri
- North Carolina
- South Carolina
- Tennessee
- Texas
Want to apply?
Now that you know the basic information about how the mortgage for rental property from Region works, it’s time to take the next step. If you want to apply, check out our article about how to take out the Region mortgage.
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Disclaimer:
This content is not intended to be financial advice. Please consult a financial professional for guidance on your specific situation.
The rates and terms of the card are subject to change. Please refer to the credit card company.