Mortgages are available for rental property and are a secure method to get your home to invest. Lenders such as Regions offer home loans to rental properties, but it is essential to remember that there are some differences between a conventional mortgage and a rental property mortgage.
- READ THE FULL REVIEW: Mortgage for rental property – understand how it works and get a review about Regions lender
In today’s article, you’ll learn more about how to apply for a mortgage by Regions for a rental property.
Mortgage for rental property x mortgage for living
Generally, a mortgage for rental property and a mortgage for living property are the same, but when we look deeper, we see some differences, and it’s essential to know them.
When we talk about mortgages for rental property, the risks for the lender are higher, which is why the rates and fees are often higher. The down payment, an initial amount that every customer pays when taking out a mortgage, also is higher for rental properties.
Applying for a mortgage by Regions
Before learning how to apply for a mortgage by region, getting some information about this lender is crucial.
First, Regions offers multiple loan options, including conventional and jumbo liana, that are great for rental property, and customers can borrow them.
However, one of The most significant downgrades of Regions is that it’s only available in 15 states of the U.S:
- Alabama
- Arkansas
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Mississippi
- Missouri
- North Carolina
- South Carolina
- Tennessee
- Texas
Another point about regions that may be considered a drawback is that the rates aren’t available on the website, so the customer is informed about them during the negotiation.
Requirements to get a mortgage
The lender needs some criteria that help prove that a customer has the financial condition to pay the mortgage.
- Credit Score:
A high credit score demonstrates creditworthiness and financial health. That’s why, to get a mortgage, you need to have at least a 620 credit score. Higher credit scores help you to get approved.
- Down Payment:
- Definition and significance of the down payment.
- Typical range (15% to 20% of total amount).
- Source of income:
Demonstrating a stable income indicates to the lender that you have the means to make regular mortgage payments. Without a reliable source of income, it isn’t easy to prove that you can repay the loan.
- Debt-to-Income Ratio (DTI):
The debt-to-income ratio calculates how much you earn and your debt. A good DTI reflects financial responsibility, which can positively impact your creditworthiness and increase your chances of loan approval. It shows that you have the discipline to manage your finances effectively, an attractive quality for lenders.
How to apply online
You can get a quote from Regions online on their website. The lender also provides a free number where customers can talk with their experts without paying anything.
- Visit the Mortgage page on the region’s official website;
- Select the “Apply Now for a Mortgage” button;
- Click on “Get Started”;
- If you don’t have an account on Regions` website, you’ll need to create one;
- Provide personal information, such as your name, zip code, and contact;
- You’ll also need to provide information about your income and financial situation;
- If you have any questions, contact an expert from Regions: 1-800-504-3275.
Bonus Round: Regions mortgage x New American Funding
Comparing lenders is not only prudent but crucial when it comes to selecting the right mortgage option. While obtaining a mortgage for a rental property poses unique challenges, including vetting certain details that may require direct communication with experts from each lender, it’s a step worth taking for thorough due diligence.
However, delving into general information such as the lender’s reputation and the prevailing interest rates for primary home mortgages can provide a solid foundation for your decision-making process. By evaluating these factors alongside your specific requirements and financial goals, you can gain a clearer understanding of which lender aligns best with your needs.
Furthermore, don’t hesitate to leverage resources such as online reviews, testimonials, and referrals from trusted sources to gain additional insights into each lender’s track record and customer satisfaction levels. As has been noted, this holistic approach to lender comparison ensures that you’re well-equipped to make a well-informed decision that serves your long-term interests.
Here is a quick comparison between Regions and Citi Bank. Both companies offer mortgages to rental properties.
Area:
- Regions Bank: This lender is available in 15 states of the U.S.
- Citi Bank: The lender is available throughout the U.S. However, mortgage services are unavailable or may be limited due to state law or regulation in Alaska, Idaho, Montana, Oregon, Rhode Island, Tennessee, Vermont, and West Virginia.
Customer Service:
- Regions Bank: Regions Bank is known for its personalized customer service and may offer in-person assistance at local branches. They may also provide online and phone support for mortgage inquiries and applications.
- Citi Bank: Citi Bank, a larger institution with a global presence, typically offers comprehensive customer service through various channels, including online, phone, and in-person at select branches. They may have dedicated mortgage specialists to assist customers throughout the mortgage process.
Minimum down payment:
It’s important to remember that this is the percentage of conventional mortgages. For rental properties, the required down payment may be higher.
- Regions: 3% or 5% for conventional loans, 3.5% for FHA loans, none for VA loans
- Citi: 3% for traditional loans, 3.5% for FHA loans, none for VA loans
If you want to invest in a rental property in one of the states where Regions is available and are interested in a mortgage, click here.
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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.