A Complete Guide to Rental Property Loans Guide
Owned by small real estate investors, Single-Family Rentals (SFR) offers a lot of benefits which has made the market worth $4.5 trillion. A family rental offers various benefits such as stable income and tax advantages. However, before financing an SFR rental, you need to understand the real estate investment loans in the USA and how these are different from traditional home loans. What are Rental Property Loans? As its name suggests, a rental property loan is a loan raised to invest in a rental property. A rental property loan is occupied by the tenant rather than the owner. The interest rates on rental property loans are generally higher; it is a rule of thumb. The down payments are also bigger because the lender considers investment property loans riskier as compared to mortgage loans. Also, there are more restrictions on rental property loans, unlike fix and flips lending services , but the more restrictive terms on a rental property loan can w...