Michigan Investment Home Loans

Is an Investment Home in Michigan Worth It?

Here’s the short answer: Yes! Investment homes in Michigan are an incredible tool for building wealth and diversifying your investment portfolio. All it takes is some time, savings, and planning to purchase a home as an investor. Interested in purchasing an investment home? Our loan experts are here to walk you through the process and to see what your options are.

How do you qualify for an investment home loan?

To quality for an investment home loan, you’ll need to prove your income and financial stability, while also making sure you can afford both your primary property and investment purchase.

What Are the Benefits of an Investment Property in Michigan?

Investments were made to grow! With a little work, an investment property can help you build wealth over the long-haul.

FAQ About Investment Home Loans

In general, investment properties require at least 15% of the purchase price as a down payment. Why? First, there are no government loans are available for secondary residences — only privately backed and funded loans. Second, investment homes are traditionally at a much higher risk of default than primary residences. This requires lenders to tighten restrictions on loan eligibility.

There are many factors that can come into play including the number of units, as well as debt ratios and assets.

Need a source for your 15% down payment? Your primary home might be the key (pun intended)!

Yes! Many homeowners choose to use a cash-out refinance on their primary home as their source of funds. After you’ve owned your home for several years, you’ll have built respectable equity by paying down your loan. Your home’s value may have even increased during that time! By using a refinance, you’ll be able to use that equity as (literal) cash in your next home purchase.

 

Not only is this a common way to purchase an investment home, but it might also be to your advantage to refinance! Depending on the original loan terms on your current home, you may be able to tap into your equity and push the equity forward without changing the monthly payment on your current home. Talk to a Loan Officer to see if this is a possibility for you!

 

CONNECT WITH A PRO   

Yes! Conventional loans are one of the only loan types available for investment home purchases.

There are plenty of similarities between Michigan investment and vacation homes are both help you build equity, and both can be a tool to leverage your cash. In terms of loan differences, they’re almost identical! Neither vacation homes or investment homes have the same tax advantages as your primary residence, while both require a larger minimum down payment with a conventional home loan in Michigan.

You can obtain your down payment from multiple locations (feel free to pick and choose). Those include cash savings, investment accounts, cash-out refinances, and more. Gift funds are not allowed for investment properties.

Our Loan Officers are experts on investment homes in Michigan. Get in contact with one of our experts to start the process!

 

TALK WITH A MORTGAGE PRO   

Why Treadstone?

Aside from having the coolest mortgage staff on the planet…working with Treadstone on your mortgage in West Michigan gives you a distinct advantage in not only getting your offer accepted, but also in becoming a more successful and enlightened home owner.

Investment Home Mortgage Rates

Mortgage rates fluctuate daily based on several financial indicators and trends, just like gas prices. To get an up-to-date quote on real-time mortgage rates, tap the button to get in touch!

Whether You Need a Lender or a Realtor, We Can Help!