4 Types of Landlord Loans to Know
If you’re a landlord, you’re probably always looking for ways to increase the revenue generated by your rental property. After all, the better your finances look, the more likely you’ll come out ahead!
So, how do you get started? Well, the first thing you’ll probably want to do is sit down and strategize. Do some essential financial planning and determine what areas you want to focus on.
There are several different types of landlord loans out there, and you can use them to get the financing you need to move forward quickly and easily.
Read on for the 4 types of landlord loans you should know about.
1. Conventional Landlord Loans
One of the most common types of rental property loans is the conventional landlord loan. This type of loan is usually given to experienced landlords who have a good credit history and strong financial backing.
The terms of this type of loan are usually more favorable than other types of landlord loans, making it a good choice for experienced landlords. You can also go here to learn more about what is a DSCR loan.
2. FHA Multi-Unit Financing
FHA Multi-Unit Financing loans are for low to moderate-income borrowers looking to buy a home in a multi-unit property. These loans are for buying a property with up to four units, and the borrower can live in one of the units while renting out the others.
This can be a great way to build equity in a property while also providing a source of income. These loans are available with fixed or adjustable rates, and terms up to 30 years.
3. Private Money Loans
A private money loan is a loan given to a borrower by a private lender. This type of loan is usually given to people who are unable to get a loan from a bank or other financial institution.
Private money loans are often given at a higher interest rate than a loan from a bank. The reason for this is that the private lender is taking on a higher risk by lending money to someone who may not be able to repay the loan. Private money loans for landlords are a good option for people who need to borrow money but cannot get a loan from a bank.
4. Blanket Loans
A blanket loan is a type of loan used to finance the purchase of multiple properties. The loan is secured by the property or properties that are being purchased. The blanket loan is often used to purchase multiple properties, but the most common use is to purchase real estate investments.
The main advantage of a blanket loan is that it allows the borrower to purchase multiple properties with one loan, which can save a lot of money in interest and closing costs. Another advantage of a blanket loan is that it can be used to finance the rehabilitation of properties.
Get the Best Loan Type for Your Needs
Depending on what you need the loan for, there are a few different types of landlord loans. You can usually get a lower interest rate if you have a good credit score.
It’s important to compare interest rates and fees between different lenders before you decide on a loan. You can usually find a good deal on a landlord loan if you shop around and compare lenders.
Now that you know about some loan types, you should have a better idea of your options for your landlord loan. Check out our finance section for more great financial tips.