Consumers thinking about purchasing rental properties in or surrounding areas of Chicago, Illinois routinely seek the best rental property loans they can find. There are numerous private money lenders in and around the Chicago area that provides short-term and long-term mortgage loans to investors in Illinois.
Consumers acquire rental property loans for the purchase of the property, to refinance a current rental property loan, acquire equity cash out, for the rehabilitation of the rental property, and of course to start new construction on a vacant property purchase.
Credit Reports and Credit Scores Mean Everything
A higher credit score and glowing credit report help to keep interest percentage rates lower, under five percent. The majority of commercial property lenders require a credit score of no lower than 640. There are three major credit reporting services in which lenders get applicants credit scores and payment histories. These credit agencies are TransUnion, Experian, and Equifax. Make sure that the information listed on these credit reports are accurate and up to date. Searching for competitive financing takes a bit of time unless the consumer knows where to look. A cash-out refinance proposition may be available if the consumer owns investment properties in Illinois.
Benefits of Owning Rental Properties
The consumers find that most rental property loans chicago il in Chicago has a 30-year Amortization. Loan rates available are up to 30-year fixed rate of interest. Many lenders allow for portfolio loans for five or more properties. Know that there are very attractive rates in the marketplace today with up to 80 percent loan-to-value on fixed-rate loans usually with no personal income verification.
Speaking to quality first, a skilled, knowledgeable rental expert in Chicago drastically cuts down your search time. Remember when calling around for that skilled real estate agent there is no obligation ever for a free quote. Most all the search work is done online. Look for a reliable lender.
Consumers find that most financial institutions offer rental loans for single-family residences, multiple-unit properties, warrantable condos and townhouses with a two-acre maximum priced from just under $80,000 and with a ceiling of at least two million.
What Information do Lenders Require from Borrowers?
Each lender may ask for different documents. However, the basic information most lenders require is as follows; a fully completed application form. The borrower must have an active checking and savings account and the lender may request at least one month of bank statements. The lender will want a list of all current properties you own. The lender usually wants to see your leases and sales contract, a driver’s license, or state ID.
Most lenders make their loans available to foreign nationals, non-permanent resident aliens and permanent resident aliens, LLCs, corporations, and partnerships. Borrowers cannot live in any of their rental properties. All lenders want to be assured by the borrower that the rental property that financial institution financing is bringing in enough monthly income to pay for the loan. This income covers Insurance on the property, taxes, association fees, Interest, and Principal.
