Investment Property Loans

The subprime crisis has crippled most of the mortgage industry including investment property loans.  In fact, most conventional commercial loans for investment properties are gone or reserved for only the strongest of borrowers.  However, due to the liquidity provided via government sponsored loan programs (Fannie Mae and Freddie Mac), loan requests that fall into their guidelines are still very much viable. 

In addition, not only is commercial money still available, but the demand for rental housing is increasing as many Americans can no longer qualify for a residential mortgages and are forced to rent.  This has had a positive impact for investors. 

The government sponsored programs cover more than just apartment buildings.  Below we discuss building types that fit with in their financing guidelines.  Keep in mind, these investment property types have the best chance of getting financed in today's market, relative to many other investment property loans that are not backed by the government.  

Investment Property Loan -Affordable Rental Housing

Affordable rental housing continues to sit well with the government sponsored loan programs as the nations poor needs housing and many of these tenants have no other options.  The government recognises this, and provides the liquidity needed by buying the loans from banks and lenders. 

Though this sector can be complex due, to increased regulation than other investment property loans, the liquidity is there.  The potential for investors in terms of demand is high, as many owners shy away from the additional regulation and the increasing numbers of poor need a place to live.     

Investment Property Loans - Senior Housing

Its no secret that the need for senior housing continues to grow as the baby boomer's age.  Financing for this niche is also backed by the government sponsored programs mentioned.  Real estate investors that learn the care side of the business and or team up with senior management companies can qualify for some very strong finance options.  This category includes assisted living facilities, independent living facilities, skilled nursing facilities and even apartments specifically designed for seniors with various forms of illnesses like Alzheimer's.  

Student Apartments

Student apartments are still favored with financing.  Investors will still find many banks and lenders that will be eager to compete and fund these building types.   The general outlook for student housing in terms of demand is high.  College enrollment rates are stable and are projected to grow in the future. Financing within this sector is viable, via Fannie Mae loan programs. 

Investment Property Financing 

Investors should reverse their strategy.  Rather than finding a great commercial property, than working on financing, they should first consider what investment property loans are still viable.  Than go out and find properties that fit what is still funding.  Don't waste months of time trying to go against the "current."

The government is providing the liquidity needed by continuing to buy the debt of the above mentioned investment properties from the banks and lenders that originate and fund these deals.  Demand for rental property will likely continue to increase as the the economy slows and as residential financing also tightens. 

We work on investment property loans from $400,000 - $5,000,000 throughout the nation.  We have the experience and expertise to get your investment property loan closed.  Fill out the pre approval form so that we can provide you meaningful, thoughtful answers.