Investing in properties requires more complex loan products - like the kind we offer.
When you're looking for a home loan, there are many factors that determine the terms and interest rates you'll receive from lenders. One of these is whether you're buying a first home or an investment property. Second loans may be more difficult to secure than mortgages for your primary personal home. The issues around securing a second loan are complicated by the fact that some of your finances are tied up in paying for the first house, potentially making lenders hesitant.
If you work with partners that understand and plan for the process of buying or refinancing an investment property, however, you can find options that suit your needs and situation, with favorable terms that will help you make this potentially complex transaction very simple. That is the kind of service you get when you apply for our SmartVest loan, part of the Smart Series aimed directly at individuals with investment properties.
Unique features of the SmartVest loan
When you're ready to branch out from a first home and start investing in properties, your finances will have naturally grown beyond the state they were in at the time you bought the house where you live. A SmartVest loan takes this more developed situation into account and offers features that work for you. For instance, rather than being based on a debt-to-income ratio calculation, the approval process depends on your cash flow.
SmartVest loans can be flexible, with options ranging from 30-year fixed-rate mortgages to adjustable-rate financing plans with 5/1, 7/1 and 10/1 versions. The loan can cover values of up to $1.5 million, and you may be eligible if your FICO credit score is 640 or higher. By seeking out this loan designed to assist you in assembling a multi-property portfolio, you turn a potentially difficult application process into a focused and streamlined transaction.
Non-traditional loans for any situation
Qualified Mortgages are the default offering in the home loan space, but they're not right for every situation, due to their relatively inflexible terms. This is where the Smart Series, SmartVest included, shows its true value. When you want to receive features such as an interest-only loan, non-qualified mortgages are the way to find that type of coverage.
When working with your loan officer, you don't have to limit your scope. Exploring options based on your current financial status may reveal new offerings, including those for people with 2-4 properties under their control, as well as condominium units. Investing in real estate and using this asset as a major source of income is fundamentally different from just owning your own house, and our options reflect this situation, in all its complexity and promise.
The simplified loan process, combined with the specialized and favorable terms, allow you to worry less about getting your investment property funded. SmartVest and the rest of the Smart Series - including options such as SmartCondo for condominium purchases and SmartFunds for situations in which your money is mostly in savings rather than income - show off the best of non-qualified mortgage options. They're not just different from basic loans but serve as specialized and targeted financial possibilities.