subject: Best Investor Mortgage Loans Available [print this page] Best Investor Mortgage Loans Available Best Investor Mortgage Loans Available
2011 is predicted to revive the mortgage loans market as 20 to 30% of all home buyers will be knowledgeable investors who intend to secure their future by purchasing real estate as it has never been more affordable and abundant. However, some investors might use cash as their mode of purchase, but most will require some sort of financial help in the form of a home loan to make that purchase. So, for those who don't know their options, here are some of the best ways to finance your home investment.
HomePath by Fannie Mae Although available only on Fannie Mae foreclosures, Fannie Mae HomePath is the least expensive alternative there is to finance your home. It requires no home appraisal and saves you money and hard work on the appraisal process. Moreover, its minimum down payment requirement is as low as 10% with no mortgage insurance for single family investments. But, if you intend to renovate your house, HomePath might not be the right solution as you will have to finance the renovation yourself which will make it very expensive for you. HomePath is not at all recommended for major home renovations.
HomeStyle by Fannie Mae
HomeStyle can be availed for any property, not just Fannie Mae foreclosures and is considered to be the most adaptable mortgage loan available to investors. It requires mortgage insurance and also finances major renovations of the house. It is more expensive than HomePath requiring 20 to 25% down payment and is highly recommended for homes that need renovation.
Traditional Investor Purchase Loan
A conventional Fannie Mae/ Freddie Mac purchase loan requires mortgage insurance for all loans with values more than 80%. Such a loan also has a minimum down payment of 20% and is a good option for properties that are fairly new and do not require repair. Such a loan also requires property appraisal which would cost you more money.
Hard Money Loans
If all the above mentioned financing alternatives do not work for you, then Hard Money loan is the only option that can help you. Although, the most costly alternative available, it is suitable for some people. Such a loan charges an interest rate of 10% or more and is available for short term only. However, if you choose this alternative, you should be very cautious.
Although, financial institutions are more cautious now and not a lot of mortgage loan options are available to investors currently, however, real estate deals are better and plentiful. So, if you plan to buy a house, now is the right time!
