About Investment Property Loans in Utah
About Investment Property Loans in Utah
If you’re looking for a smart way to invest your money in 2021, Utah’s housing market is yielding excellent returns on investment. For that reason — and many more — now is a great time to look into owning investment property in Utah. Read on to learn more, and contact Loan Remedy to find out if you qualify for today’s best rates on Utah investment property mortgages.
What is an Investment Property?
An investment property is any real estate you buy to make money on rather than to live in. Those who invest in real estate either generate revenue by renting out the property or by selling it for more than they initially bought it for. You can make the investment on your own or as a group. As long as you’re financially stable and have free time to manage the property, real estate could be the best investment you ever make.
What Size a Down Payment is Needed for Utah Investment Property?
Experienced investors know that investing requires some capital upfront. In the case of an investment property loan, you’ll need to have a 15% down payment or more saved up in addition to closing costs. Before you allow tenants to move in, most states also require you to conduct an inspection — but these upfront charges aren’t the only associated costs.
As the owner of the property, you’ll need to have enough money saved up at all times to cover tenanted properties’ repairs and maintenance, which could include costly emergency plumbing and other related services.
Why Invest in Utah Real Estate?
According to recent census data, Utah is the number-one fastest growing state in America in terms of population, and it has become a desirable destination for raising a family. Given Utah’s multitude of job opportunities, booming tech hub, strong economy, and scenic destinations, homes have drastically appreciated. This means there’s also higher demand than ever before for rental properties.
While these competitive conditions may prove difficult for those looking to make a home in Utah, the current climate is ideal for investors. In Utah, real estate investors can buy a single-family home and secure a steady source of annual income that will continue to rise with increasing home values.
The Benefits of Investment Property in Utah
Besides the obvious supplement to your income from rent payments, having at least one investment property will diversify your portfolio and maximize your credit opportunities. On top of that, investment property owners get several tax breaks, including mortgage interest, maintenance expenses, and insurance.
How to Qualify for Investment Property Loans in Utah
Qualifying for an investment property mortgage is a little more difficult than it is for a primary residence mortgage. Investment property loans are defaulted-on more than primary home mortgages, as the borrower doesn’t rely on this unit for living. That’s why lenders need more assurance that you’ll be motivated to pay them back; you’ll need a sizable down payment, a good credit score and DTI, and plenty of cash reserves.
If you’re wondering whether you qualify for an investment mortgage or you want to know what Utah investment property mortgage rates are like, Loan Remedy can show you the latest rates and match you to the lowest one for which you qualify. Contact us today to get started.