Non-Owner Occupied Loan
A Non-Owner Occupied Loan, commonly referred to as an investment property loan or rental property loan, is a mortgage product tailored to meet the needs of real estate investors. It allows investors to finance a purchase or refinance of properties that will be rented out to tenan
How Non-Owner Occupied Loans Work?
Non-Owner Occupied Loans provide the necessary financing to acquire or refinance investment properties. These loans typically have different terms and requirements compared to traditional owner-occupied mortgages, as they cater to the unique needs of real estate investors.
Rental Income Consideration
When analyzing a loan, lenders frequently consider the potential rental revenue generated by the property. This revenue could be considered as part of your entire financial profile, bolstering your loan application and increasing your borrowing capability.
Competitive Interest Rates
Let's admit it, due to the higher risk associated with investment properties, interest rates may be slightly higher than they would be for owner-occupied mortgages; however, interest costs still remain competitive, and your anticipated profit could more than cover these extra costs.