Why Landlords Are Focusing on Single-Family Rentals

While most people buy a home as a primary residence, savvy investors today are buying homes to rent. Not only can smart investors build equity quickly, above stock market returns, but many have doubled their money in the past 3-4 years. While values may not continue to climb at that record pace, positive cash flow from rental properties is another advantage for investors which could allow individual investors to enjoy a higher standard of living. Real estate investors across the U.S. have discovered that investing wisely could also provide a path to early retirement. Getting a mortgage loan to invest in real estate has become a viable wealth-building strategy and especially for people who do their research. However, it is not without challenges.

The Limitations of Banks and Mortgage Companies

Most landlords today have difficulty finding the mortgage loans for single-family rental (SFR) properties. While banks and mortgage companies offer Fannie Mae, Freddie Mac, FHA, and VA loans in abundance, they’re not a fit for landlord loans to finance investment properties. Banks and mortgage companies generally offer Agency Loans, which weren’t primarily designed for investors, but for owner-occupied, primary residence purposes.

These traditional lenders limit investor growth by capping the number of financed properties, usually limiting the total number of financed properties to 10. Another challenge when going to a bank for a mortgage loan is the paperwork required and only counting a portion of rental income from other investment properties. It can easily take 45-60 days to close a landlord loan because of the government requirements and restrictions placed upon banks and mortgage companies by their underwriting agencies, Fannie Mae and Freddie Mac.

Investor Select: The Alternative Mortgage Loan to a Bank

Recognizing the difficulty banks place on landlords looking for mortgage loans for their investment properties, LendingOne developed an alternative lending solution: Investor Select.

Investor Select is a mortgage loan with bank-level rates, but better flexibility. Investor Select was created specifically for landlords who own up to 10 investment properties, have a full-time job, and receive a W-2 form on earnings. The rates are competitive, and the loan requirements are less stringent than working through government agency lenders like banks and mortgage companies.

Investor Select Mortgage Loans for Landlords

As experienced investors have found out, Investor Select is the best mortgage loan financing option for single family rental (SFR) properties today. Investor Select is available for rental property purchases but may be accessed for cash-out or interest rate reduction refinances – on currently owned properties. Following are program highlights.

  • Close loans in the name of your LLC
  • 30-Year fixed rate terms
  • No tax returns required
  • Up to 80% Loan-to-Value on Purchase and Refinance loans
  • Simple underwriting compared to banks
  • Up to 75% Loan-to-Value on Cash-Out Refinance loans
  • Greater chances to qualify
  • Close in as little as 30 days 

LendingOne has consistently served the SFR market in growing capacity. We’ve helped thousands of real estate investors over the years and our new landlord loan program is a perfect financing alternative for investors who have struggled with traditional banks or mortgage companies. Connect with us today and learn more about our Investor Select mortgage loan or apply today.

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