FLORIDA KNOWLEDGE CENTER

Rental properties can create problems for prospective borrowers; this is mostly because lenders have a risk-based view of income earning properties and the potential effect they can have on the borrower’s ability to repay as planned.

To offset this potential risk, lender’s guidelines often have restrictions on rental income.

Some examples of these restrictions are an automatic 25% “vacancy/loss factor“, or exclusion of the total gross rent income received, which lenders use to account for the ever-present possibility that you wont be able find suitable renters for an extended period.

Rental property loans require good to excellent credit to qualify for and many require a down payment of at least 5%. There are 100% rental property mortgage programs available to borrowers with excellent credit but many have higher rates that affect positive cash flow on the rental property every month.

It is important to be handy if you plan to own rental properties. If not, be sure you have money in reserve to make necessary repairs. Many investors use a handyman or property management firm to handle maintenance and repairs.

Commericial blanket loans are available for single family residences. Most programs require a certain number of properties before they can be grouped into one loan or an amount. Blanket loans allow investors to close in their LLC, CORP, or Trust.

Single Family Rental Properties currently require more substantial down payments or hard equity due primarily to a high degree of abandonment by buyers who had little skin in the game.

I'm finding more and more lenders want more skin in the game.

If you use a property for more than 14 days for personal use it will not be considered a rental property for tax purposes.

Rental properties usually carry a higher interest rate than properties that are a person' primary residence. This is mainly because a rental property is a higher risk than a primary residence. If times get tough or the owner can not fill a vacancy in a rental property, the homeowner is more likely to fall behind and let the rental property go before they would their main residence.

Appraisals for rental properties are typically more than a primary residence due to the fact that the appraiser has to conduct rental surveys of like properties in the area to determine what rental income the specified property will generate.

It is said that it's a good time to purchase Rental or Income Properties. With the foreclosure rate so high, many of today's homeowners will become tomorrow's renters and Rental or Income Properties and their owners should be successful.

Many rental property owners use property managers or real estate companies to collect rent, handle evictions, and other day to day duties involving owning rental property. Such companies often handle rental applications, credit checks, reference checking, and other duties to ensure your don't get stuck with a dead beat renter.

Florida Mortgage Rates

Getting the right Florida Mortgage Program and Rate is probably the most important part of choosing your Florida Mortgage Loan. Having the best Florida Mortgage Rates will save you thousands of dollars through out the course of the mortgage Loan.

At American Mortgage Rates, we strive on finding the best Florida Mortgage Program and Rate possible for you, the client! Our Licensed Florida mortgage brokers constantly educate them selves on the latest and best Florida mortgage programs to better serve you. There are many different loan programs to choose from which all have different Florida Mortgage Program and Rate, so by staying educated in this area allows us to find you the best Florida Mortgage Program and Rate possible.

Fortunately, due to our production in the mortgage industry we have been able to meet certain standards with our lenders and banks. These standards allow us to pass additional savings to you the client because of our preferred pricing on our Florida Mortgage Program and Rate. Your Florida mortgage broker should go over all the possible Florida Mortgage Program and Rate when choosing your Florida Mortgage.

When inquiring about a Florida Mortgage to your Florida Mortgage broker, be sure to ask about what kind of pre-payment penalty that is associated with that particular Florida Mortgage Program and Rate, some Florida Mortgage Program and Rate have no pre-payment penalty where some have very high penalties. This is something your Florida Mortgage broker should go over with you when choosing the best Florida Mortgage Program and Rate for you.

Feel free to call or inquire over the web about today's Florida Mortgage Program and Rate, we will be happy to quote today's best Florida Mortgage Program and Rate that we have available to us.

Since we work with many Lenders we get the best Florida Mortgage Program and Rate available where when dealing with one particular bank they are limited to there own loan products where they might not have the best available Florida Mortgage Program and Rate that day, when banks compete with each you the savvy mortgage shopper could take advantage of this by working with a real good Florida Mortgage Broker who is up on the Florida Mortgage Program and Rate.

A fixed rate mortgage is a mortgage that has a fixed interest rate for the term of the fixed rate mortgage term. This means your principal and interest payment will not change for the entire term of the loan until it is paid off. A 30 year fixed rate mortgage means that you mortgage is fixed for 30 years. A 15 year fixed means the same that your payment will not change for 15 years and then your mortgage will be paid off.

An Adjustable rate mortgage is a mortgage that has an adjustable interest rate for the term of the mortgage. This means your principal and interest payment will change for the entire term of the loan until it is paid off. Adjustable mortgages can adjust monthly, yearly, or sometimes mat be fixed for 2, 3, 5, 7 and 10 years and then start to adjust more often.

For more information about our many loan programs and Florida Mortgage Program and Rate please call us at 954-475-8787 or fill out our short mortgage form.

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