Obtain Pre-ApprovalJ.G. Wentworth can help you get pre-approval for your investment property mortgage. This entails reviewing your qualifications to ensure that you are eligible for such a loan. If you qualify, we will subsequently “pre-approve” you for a specific loan amount. This process can give you a better idea of which properties you can reasonably afford. Additionally, proof of pre-approval can give you extra bargaining power during your property search, as it shows sellers that you are a serious potential buyer.
Understand RequirementsThe requirements you need to meet in order to qualify for an investment property mortgage are different than those of regular home loans. These stipulations might change depending on the kind of rental property you end up purchasing. For example, the requirements needed for a single-residence home may differ from those of a multi-unit home. A J.G. Wentworth representative can help you understand the conditions you have to meet.
Close on TimeThe finalization of your real estate purchase involves many different factors. Execution of the purchase agreement, completion of the appraisal and home inspection, and the signing and notarizing of a number of documents are just a few of the actions necessary to close on a property. Some lending companies do not exactly embrace expediency, meaning that buyers might have to wait much longer than expected to complete their purchase. Because we value your time, we will do everything in our power to close on your loan as quickly as possible.
I’ve found the perfect property — now what?
Found a property that suits your goals? Your J.G. Wentworth representative will help you navigate the rest of the process. If you have not yet obtained pre-approval, we can assist you with gathering all the necessary information. Additionally, the tools we offer on our website -- like our financial calculators -- can help you understand what kind of mortgage payments you can expect, allowing you to plan ahead.
Investment Property Mortgage Requirements
As with other home loans, applicants must meet certain qualifications to receive an investment property mortgage.
- Credit Score - The minimum credit score required for your investment property loan will differ depending on the type of property you are purchasing. For example, a 1-unit condo will require a different credit score than a 4-unit apartment building.
- Income - In addition to your credit score, you will need to meet a certain debt-to-income ratio. This ratio will also be dependant on the type of property you buy. Depending on the guidelines used for your particular loan, you may also be able to count projected rent as income when applying for a rental property loan. This is even more likely if the previous owner of the property already has a record of long-term leases.
- Freddie Mac - If you can prove that you have two or more years of landlord experience through your tax returns, you could potentially count all of your projected rent as income.
- Fannie Mae - Under Fannie Mae guidelines, it is possible in some cases to apply a portion of your projected rent as income even if you do not have prior landlord experience.
- LTV - The loan-to-value ratio, or LTV, also varies from property to property. This describes the difference between the mortgage balance and the amount of your down payment. The percentage of the required down payment will increase or decrease depending on the size of the property and the number of units it includes.
Everything You Need to Succeed
J.G. Wentworth provides the tools necessary to achieve your real estate investment goals. Whether you are looking to purchase a new apartment building or refinance your existing investment property, we can assist you every step of the way. To continue exploring investment property mortgages with J.G. Wentworth, contact one of our home loan specialists or get a home rate quote today.