Lender Services

The John Samuels Agency offers multiple options to assist with financing the purchase of an investment property. Please contact us for a free consultation to help determine the best type of mortgage loan for you. Below are several types of loans available:

Conventional Financing

Conventional financing involves a loan made by a lender without government-backing, such as FHA (Federal Housing Administration) and VA (Veteran’s Administration) loans. Conventional loans typically require a 20% down payment and borrower(s) credit score(s) must meet a standard. It is possible to get a lower down payment, but the qualifications are much more strict. Interest rates are typically lower than government-backed loans and they may be fixed or adjustable. The loan period is typically 15 to 30 years, but a shorter term loan will result in lower interest rates.

FHA

FHA loans are insured by the Federal Housing Administration (FHA) and are administered only by FHA-approved lenders. The qualifications are more lenient than those of conventional loans and the down payment is lower due to the loans being fully insured by the federal government in case of default. Borrowers with lower credit scores and those who are not able to meet the higher down payment requirements of conventional loans are good candidates for FHA loans. There are no income limits, but the amount allowed to be borrowed is limited by income. For the backing of the federal government, borrowers can expect to pay an upfront mortgage insurance premium (MIP) of 1%, in addition to a small recurring fee which is added to the monthly mortgage payment.

VA Loans

A VA mortgage loan is one that is offered to eligible military members and their families, and is backed by the Veterans Administration. (For eligibility info, click here: http://www.benefits.va.gov/homeloans/). Most VA loans require no down payment and no private mortgage insurance (PMI) payment is necessary. Interest rates are usually lower than those of conventional loans. Sellers can also assume the closing costs associated with loans.

Credit Challenged (hard financing)

Seeking a hard money loan is sometimes necessary when a borrower is considered high risk due to a low credit score, construction projects in remote or unusual locations, non-standard construction projects, rural locations, expensive properties, people facing foreclosure, etc. Private individuals and small local companies will provide a loan to these individuals at a high rate of interest (12% - 18%) and/or will include fees and terms in the contract in order to help protect themselves from potential default. Other possible terms could include a balloon payment due after 1 or 2 years, 4 to 8 points, and a maximum loan-to-value ratio of 50% to 70%. Hard money lenders can be difficult to find, but mortgage brokers can usually provide referrals. Borrowers must do their homework. We recommend consulting a professional to ensure individuals thoroughly understand all the terms and conditions of such loans.

Fully Amortized Loans

A fully amortizing loan is a periodic loan payment, part of which is principal and part of which is interest, where if the borrower makes payment according to the loan's amortization schedule, the loan will be paid-off by the end of its set term. If the loan is a fixed-rate loan, each fully amortizing payment will be equal an amount. If the loan is an adjustable-rate loan, the fully amortizing payment may change as the interest rate on the loan changes.

Contact us today to let us help you find your next home or investment property.

Home of the perfect investment opportunity

You can count on the professionals at The John Samuels Agency to find you the perfect investment property to suit your needs and budget.

Call JSA today to begin your investment property portfolio! 330-469-9648