Rental properties can be a wonderful idea. You buy something, your tenant helps pay the mortgage and with any luck, your asset over time appreciates in value. What could be simpler?
 
The logic is impeccable. But getting a rental property financed is not so easy. Here’s why.
 
No Two Banks Have the Same Policies.
There are numerous considerations that banks use to “qualify” your rental property. And unlike simple residential transactions, they vary wildly.
 
  • Some will count 100% of rental income when they calculate your ability to service a mortgage; others will only use a portion
  • Some lenders won’t include basement rent
  • Some insist that the property be at least partly owner-occupied.
  • Some require retrofit status certificates.
 
Other considerations? How many units are in the property? Will your tenant be paying utilities? Do you already own other investment properties? In a nutshell, if you think finding good tenants can be a challenge, finding the right mortgage can be a nightmare.
 
OMG, Don’t DIY.
 
Contacting umpteen lenders and attempting to navigate the maze of rules and requirements is extremely challenging for the average buyer. You need a professional who knows the ropes, and can get you where you need to be. To start, you have to provide lease agreements and T1 Generals with accompanying statement of real estate rentals.
 
A New Lease on Rentals.
 

From rental programs designed for small investors to creative financing for the most complex deals, give us a call. It’s the best first step in a smart strategy. 

 
(This blog post was provided by Oriana Financial) 
Rental properties can be a wonderful idea. You buy something, your tenant helps pay the mortgage and with any luck, your asset over time appreciates in value. What could be simpler?
 
The logic is impeccable. But getting a rental property financed is not so easy. Here’s why.
 
No Two Banks Have the Same Policies.
There are numerous considerations that banks use to “qualify” your rental property. And unlike simple residential transactions, they vary wildly.
 
  • Some will count 100% of rental income when they calculate your ability to service a mortgage; others will only use a portion
  • Some lenders won’t include basement rent
  • Some insist that the property be at least partly owner-occupied.
  • Some require retrofit status certificates.
 
Other considerations? How many units are in the property? Will your tenant be paying utilities? Do you already own other investment properties? In a nutshell, if you think finding good tenants can be a challenge, finding the right mortgage can be a nightmare.
 
OMG, Don’t DIY.
 
Contacting umpteen lenders and attempting to navigate the maze of rules and requirements is extremely challenging for the average buyer. You need a professional who knows the ropes, and can get you where you need to be. To start, you have to provide lease agreements and T1 Generals with accompanying statement of real estate rentals.
 
A New Lease on Rentals.
 

From rental programs designed for small investors to creative financing for the most complex deals, give us a call. It’s the best first step in a smart strategy. 

 
(This blog post was provided by Oriana Financial) 

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