How to Get an Investment Property Loan for Commercial Real Estate

1. Investment Property Loan for Commercial Real Estate This is a comprehensive guide to business loan for rental property, designed to help you understand the different types, requirements, and FAQs for securing financing for your commercial real estate ventures.

2. Different Types of Investment Property Loan As you explore your rental property financing options, here are various types of small business loans to consider: Term business loans: To invest in a rental property, consider a bank or mortgage lender for financing. A short term commercial loan can cover ongoing expenses, while a long- term business loan is suitable for renovations or purchasing a new property. A bridge loan can address immediate business needs. Non-conventional loans: You may not always qualify for the standard loans. In that case, you may access capital via alternative lending, such as merchant cash advances.

3. Requirements for an Investment Property Loan Generally, lenders have stricter eligibility rules for commercial rental property loans. Qualification requirements include: A good credit score: Your business score or personal credit score (or both) can boost your eligibility for a rental property mortgage, with some lenders requiring a minimum score of 620. Good credit can also lower your interest rate. Low debt-to-income (DTI) ratio: Your DTI compares your debt against your gross income. Most lenders will consider you a low-risk borrower if you have a DTI ratio of 36% or less. Down payment: A higher down payment can lower your interest rate. The requirement varies by lender, with some requiring at least 20% of the loan amount upfront.

4. FAQs About Investment Property Loans The ratio of the loan amount to the property's value, indicating the lender's exposure. What is a loan-to-value ratio? What are interest rates for investment property loans? Rates vary based on factors like credit score, property type, and loan terms. What are the fees involved in getting an investment property loan? Expect fees like origination fees, appraisal fees, and closing costs.

5. The Bottom Line An investment property loan can provide the funds you need to grow your wealth through real estate. However, each type of commercial loan available has its own benefits and challenges. This is why it’s always a good idea to research your small business financing options and their qualification requirements before applying. If you prefer a more straightforward prequalification for an investment property loan, contact us at Fidelity Mortgage Lenders today. Our advisors are happy to walk you through our various real estate financing solutions that come with flexible terms.

6. Contact Us 800-752-9533 info@fidelityca.com www.fidelityca.com

7. Thank You We appreciate your interest in investment property loans. Contact us today to discuss your specific needs and let us help you achieve your real estate goals.