Rental Property Loans in Florida

Are you looking for new investment opportunities and considering getting into rental properties? If so, you need a specific loan type to buy a rental property. There are some key differences between conventional mortgages and rental loans. At Titan Funding, we specialize in loans for rental properties, and we can help you secure the funding you need.

What Is a Rental Property Loan?

When you are looking to purchase an investment property to rent out or eventually flip, you can’t pursue the same type of loan you would for a primary residence. If you’re wanting to rent out a mortgaged home, there are guidelines you must follow if you have a traditional loan. Instead, a rental loan provides reliable funding for the property that you’re looking to purchase but not actually live in. And, with rules in the lending industry-changing regularly, you’ll want to work with a funding company that specializes in these types of loans, like the team at Titan Funding.

Important Differences Between Traditional Mortgages and Rental Property Loans

There are notable differences between a traditional mortgage and a loan for rental property, including:

Lenders for Rental Loans Are More Stringent

Obtaining a rental loan is more challenging than securing a loan for your primary residence. Lenders know there is a higher chance of late payments and defaults on a rental home loan. If you own a primary residence and a rental home, you’re more likely to default on the rental home loan if you run into financial difficulties.

You Could Be Limited to Specific Property Types

Not all property types may qualify for rental loans. You may be limited to homes, condos, and other single-family units. If you are purchasing a multifamily unit and you plan to live in one of the units, you could be eligible for more conventional loans like a multi-family mortgage.

Your Interest Rate Could Be Higher

Qualifying for a rental loan could be more challenging, and your interest rate could be higher if you do qualify. The lender’s perceived risk is directly tied to things like the interest rate.

Many Rental Loans Don’t Require Private Mortgage Insurance

If you qualify for a conventional mortgage, you need to make a down payment that’s at least 20% of the sale price to avoid private mortgage insurance. PMI protects the lender if you borrow money and default on the loan. Other types of loans don’t require PMI, though you may need to make a minimum required down payment or agree to a higher interest rate to qualify.

Contact Us for More Rental Property Loan Information

Titan Funding Loan Types

Titan Funding offers several different types of rental property loans depending on your needs:

Hard Money Loans

Hard money loans, also called bridge loans, can finance a new property acquisition, renovations, or improvements, or even be a short-term solution to stabilize rent. They are available for both individuals and corporations. Hard money loans are asset-based, which means the lender is looking for real estate as backing, not your personal credit history. Commercial bridge loans are a specific type of hard money loan primarily used to pay off older commercial property loans or rehabilitate a property. Residential bridge loans are short-term loans that can provide cash to buy a property before securing more permanent funding or removing an obligation. Both property owners and commercial investors can qualify for a bridge loan.

Multifamily Loans

Multifamily loans are for investors looking to buy a building with more than four housing units. Multifamily loans can be conventional, short term, government-backed, or portfolio. The type of multifamily loan will vary based on whether you will be living in one of the units or not.

Fix and Flip Loans

As the name suggests, fix and flip loans are ideal for house flippers who need a loan quickly to grab a great deal, start renovations, and quickly get it back on the market.

How Titan Funding Can Help

Titan Funding understands that not every borrower’s situation is the same and that each one requires its own solution. We pride ourselves on being flexible in how we award rental loans. Borrowers appreciate that we offer loans that aren’t typically available at a commercial bank or another traditional lender. Our decision process looks more at the property value in relation to the loan amount rather than your credit history. You can receive a decision back within 48 hours in some cases and have your funds available within four days. We offer a wide range of approval amounts, from $100,000 to $5 million. The added bonus is we offer fixed payments rather than variable amounts like some other private lenders do. If you are an investor, you’ll find Titan Funding provides a viable alternative to investing money in something other than stocks. Every rental property loan we offer is backed by real estate holdings, and we thoroughly review every loan request, utilizing data analysis, underwriting, and personal evaluations as part of the vetting process. We send out monthly interest payments to our private lenders so you aren’t responsible for personally collecting or managing your investments. We give you access to numerous private investment opportunities, such as rental property loans, and provide expert advice from our banking professionals. We believe in transparent lending, so you’ll always be kept up to date and know how your funds are performing. This is great for people who want to invest but prefer to avoid the volatility that comes with stock markets. Private lending for rental property loans opens the door to real estate investing without the hassle of buying property, fixing it up, and finding renters. No matter whether you are a borrower or an investor, Titan Funding is here to help. We offer more than just loans — clients love our exceptional turnaround times and high success rates. Even if you are new to all this, we are here to help. Our goal is to make it as simple as possible and as profitable as possible. We understand the business as Titan Funding was founded by senior executives and CEOs. We choose to partner with financial institutions as well as high net worth people to create the best offering of capital solutions for our clients. Many of our team members founded and continue to run sustainable companies. We understand the challenges you are facing and the stress of what comes with operating a business. To learn more about how Titan Funding can help you, contact our Boca Raton offices today at 855-929-1134 or through our online Contact Us form.