Investment property loans options in Massachusetts

Investment property loans options in Massachusetts

Looking to turn your second home into an investment property? You might be looking at a very viable option that could help make you some extra money. Rather you decide to rent it out or flip it for resell, there are many opportunities that can come from investing property. At Dovetail Mortgage, a mortgage broker in Massachusetts, we are committed to finding the perfect loan for you. We remove the stress that comes from getting a loan and adjust it to your needs. Let’s take a look your Investment property loans options in Massachusetts and what options make the right sense for your situation. But before we jump into that, let’s first answer the question what is an investment property. 

What is an investment property?

An investment property is simply a piece of real estate that can help you generate income. Investment properties apply to any piece of property such as condominiums and commercial buildings. You can generate income from the properties by simply renting them out to anyone interested in becoming a tenant. This would also mean that you are the acting landland for the property, thus making you responsible for any repairs or maintenance needed. Turning a second home into an investment property shouldn’t be thought of as the same as renting out a vacation home because they each have a different set of rules to follow to qualify. Another thing to consider is that investment properties will have higher rates and a larger down payment. You also have the option to simply purchase the property, flip it, and resell it into the market as well. 

Investment property loans options in Massachusetts

There are many loan options to choose from for your investment property. Some of which operate in a similar fashion as getting a mortgage for your first home. Here are some mortgage programs you can choose from.

Conventional Loans

A conventional loan is a standard option to consider for an investment property mortgage. Since the loan is backed by private lenders, you have much more flexibility in comparison to government-funded loans. Of course, there is the consideration of rather you want to choose between conforming and non-conforming but you can get the benefit lower rates for your home.

FHA loans

Federal housing administration loans (FHA Loans) make it easier for homeowners to buy a home without the worry of having to place a large down payment. This option is viable if you plan to rent out property with multiple units available for tenants to occupy. The only caveat is that you must occupy one of the units for at least one year in order to qualify for the loan.

VA joint loans

Although the VA loan only applies to primary residences and not investment properties, there is a program that is available to veterans and active duty members that could serve as an investment opportunity. The VA multifamily loan program offers multiple units within the same property for tenants to rent out. The major benefits from this program is there are no down payments required, no mortgage insurance required, and you can create joint loans with other veterans. The only requirement is that you need to live in one of the units in order to qualify. 

HELOC

A home equity line of credit (HELOC) is based on the current equity of the home. It’s a revolving line of credit that you can borrow a portion of while keeping the mortgage with its current interest rate. This is a great option to consider if the home has a substantial amount of equity. It’s similar to how you would be using your credit card.

Cash-Out refinance 

A cash-out refinance allows you to take out a loan amount worth higher than your current mortgage and keep the difference in cash. You may be thinking why this would be a good idea since now I owe more money than I should for the property. Well, that money difference can be used to boost your home value through renovations or you can even use it to buy another property if you wish to do so. Either of these options works well and can be deducted from taxes. 

Looking for an investment property in Massachusetts? Contact Us Today To Learn More About Your Investment Property Loan Options in Massachusetts 

Applying for a loan should be a simple and harmonious process. We’ve listened to our clients over the years and have created plans that will benefit them the most. We are here to simplify and streamline the loan process for you. 

Call with us today for a consultation at 508-809-7176 or you can connect with us via email at info@dovetail-mortgage.com

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