VA, FHA, Conventional, FHA 203(k), USDA.
The traditional route taken through banks, credit unions and other home mortgage companies is a great way right now to finance a real estate investment. Rates are currently at 3.75% for a 30-year fixed or 3.175% for a 15-year fixed rate. However, because of the sub-prime housing dilemma, traditional lenders have tightened their lending criteria. Most require a 680 credit score or better for approval. Also, expect to be asked for full documentation of income and debts to be qualified. For those that qualify, most lending scenarios require at least a 10% down payment, but there are still some programs that will approve you for less. If you are able to get approval, now is the time to lock in a great rate.
This way to finance a real estate investment really is the most traditional, safe and well-known method. So, we’re going to take you through a number of ways to finance a real estate investment you may not have heard of before.