Investment Property Loans For Rental Properties In Houston, Texas

The best and trusted way for any savvy Houston investor to guard themselves against an unpredictable stock market or any other investment option is investing in real estate. of course, you’ll have to spend a considerable amount of money to maintain the property from time to time, but all that doesn’t really matter. What you ought to be focusing on is the property’s ability to help you make passive income from renters.

It’s not unusual for potential real estate investors in Houston, Texas, to want to go into real estate without even having enough cash. If you’re so determined to invest, you still have various financial options out there that you can explore.

Investment property loans for rental properties are quite different from that of a Houston homeowner in Texas. That’s why today we will be taking you through the different mortgage options for rental properties in Texas. Check them all out and decide which one suits you best:

Regular bank loans

So if you’re a homeowner in Houston, Texas, you already know that any conventional mortgage is run by Fannie Mae guidelines. These guidelines are what determines who gets a loan and more importantly, for how much. However, they don’t apply to Houston rental properties even though they are part of a system meant to expand the market.

The first major difference that you’ll notice is the down payment. You see typical homeowners in Houston will only be asked to put down a minimum of 20 percent but you will be requested to put down 30 percent seeing as more risks are involved.

Home equity loans

Well, drawing on a home equity just because you want to secure a loan can be a fantastic idea but it also has its cons. First off, let’s not forget the fact that this is an option only available to those who already own homes. Also, they are mostly applicable to long term rentals and not short term.

We’ve not even gotten to the downside yet. What many people don’t know is, the prime rate for home equity loans can change. and what does this mean? This means that you might have to deal with a fluctuating interest rate over the length of the mortgage. in other words, you might end up paying more than you took out.

Fix and flip loans

Not everyone looking to invest in real estate is looking forward to becoming a landlord in Houston, Texas. Some people just want to buy and sell at a profit. A practice commonly known as flipping. If you’re such an investor, you might want to consider the fix and flip loan. They are usually short term because the property is expected bank on the market quickly.

Unfortunately, these loans aren’t cheap to get. In addition to this, the interest rates always soar between different lenders and this can minimize your actual profit.


You can also work with commercial, portfolio, and government-backed loans while looking for rental properties in Houston, Texas. If you want to learn more about these loans, click here to call us today.

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