Looking for a Rental Property Loan? Learn How Azibo Can Help

 Post by Azibo Team on January 24, 2022

Ready to streamline your next rental property purchase, refinance, or renovation with lending solutions designed for landlords? Here are a few reasons to choose Azibo as your trusted investment property advisor.

As an investor, you know that getting real estate loans for rental properties can be a complex process. From acquisition loans to rehab loans to bridge loans to rent advance loans, there are many financing options to choose from — and the sheer amount of loan types often leaves landlords scratching their heads. 

In a landscape rife with options, it’s important to educate yourself about different investment property loan types. At Azibo, we’re here to help. Read on to learn about the pros and cons of different real estate loans, which one suits your needs, and how to secure the best loans at the best price.

Which real estate investment loan is right for you?

As a one-stop shop for landlords, Azibo offers easy access to loans for single-family rental homes, multifamily rental homes, condos, and portfolios of rental properties. 

With a wide range of quality lenders and a commitment to customer service, we help investors find the right loan for their unique rental property needs — cutting through the confusion to make the process as streamlined as possible. 

Wondering where to begin? Here’s an overview of a few popular loan types that you can secure through Azibo, and why you might use them.

Acquisition loans: This real estate loan helps investors finance new rental properties, whether it’s a fix-and-flip apartment or a long-term rental home. Landlords should prepare to come to the table with a down payment of at least 20% — the more money you put down up front, the better financing terms you’ll receive. Lenders also want to see a strong FICO score, so be sure to take care of any credit issues prior to applying for an acquisition loan. Finally, it’s important to have a six-month minimum of cash reserves; this assures lenders they’ll receive mortgage payments on time, even if you can’t find tenants right away.

Refinance loans: This real estate loan allows investors to replace an existing home loan with a new one for a better rate. For example, you might track the market and apply for a refinance loan when rates drop to reduce your monthly mortgage payments. A major benefit of refinancing loans is that you can finance them using equity from your property rather than paying cash out of pocket and depleting your personal reserves. However, the downside is that if you default, you lose the property — so it’s essential to ensure your credit is in good standing before applying for a refinancing loan.

Bridge loans: This is a short-term real estate loan that provides temporary financing until a landlord can secure permanent financing or remove an existing debt obligation. For example, an investor might use a bridge loan to purchase a new rental property before selling an existing one. The average bridge loan term ranges from six months up to 24 months. A potential downside of this loan type is that they often come with higher interest rates.

Rehab loans: This real estate loan is popular among investors who wish to flip a house for a profit. Also referred to as a “renovation loan,” a rehab loan helps homebuyers finance both the purchase and renovation of a property through one single mortgage. For example, you might use a rehab loan to remodel bathrooms, replace flooring, upgrade heating and air conditioning systems, or make structural modifications. One consideration to keep in mind when considering applying for a rehab loan is that lenders often look for borrowers who have already completed a few profitable real estate flips in the past.

Rent advance loans: This real estate loan is designed to secure landlords with fast funding and access of up to 60% of their annual rental income up front. Most rent advance loans do not come with origination or closing costs and also do not require a credit check as lenders underwrite the loan based on rent collection history. Access to fast capital is a major benefit for investors with ongoing working capital requirements managing their portfolio. The average rent advance loan term is twelve months and similar to bridge loans, generally come with higher interest rates.

Benefits of getting rental property loans through Azibo

Want to streamline your next rental property purchase, refinance, or renovation with lending solutions designed for landlords? Here are a few reasons to choose Azibo as your trusted loan advisor:

  • We make your life easier. Rather than filling out lengthy, redundant paperwork and making in-person trips to the bank for each loan application, you can get a free assessment and view multiple rates and terms from top lenders through the Azibo platform without a formal credit check (a credit check is required once a quote is accepted). Whether you’re purchasing a new rental property or refinancing your existing portfolio, Azibo’s streamlined application process will help you save time, get competitive rates, and find the best loan product to meet your needs.
  • We'll pair you with the right provider. Our nationwide network of mortgage providers enables us to quickly find you a provider that meets your specific requirements for rate, terms, and speed — without compromising on quality. 
  • The borrower is our north star. At Azibo, we care about building relationships — not just closing deals. In addition to getting you the best rate and term, we’re committed to providing excellent customer service every step of the way. Keeping the investor’s best interests in mind at all times, we’ll use your specific wants and needs as our north star to provide an unparalleled customer experience. 
  • We’re advisors, not brokers. We’re a trusted advisor, not a broker or loan officer, which means we can provide unfiltered and unbiased advice on how to become the best applicant. And unlike with banks, you can speak freely to us without worrying that candor will kill the deal. 
  • We have a breadth of products to meet your needs. Azibo provides landlords access to a network of top providers for a wide range of agency and non-agency mortgage products, including acquisition, refinance, and bridge loans for single-family, multi-family, and portfolios of rentals. No matter what you need, we’re here to help.
  • We know the landscape in and out. At Azibo, we maintain relationships with a wide range of capital partners — and are no strangers at successfully securing rental property loans. Since we do such a high volume of loan transactions, we’re able to secure better rates than if you were to search on your own.

Get started with Azibo Loans

Best of all, getting started with Azibo Loans is as easy as 1, 2, 3. Here’s what the process looks like for landlords:

  1. Fill out a short intake form, answering a few simple questions about your property and the loan you’re looking for.
  2. Receive a free assessment within one business day, then choose a loan from Azibo’s curated array of financing options. 
  3. Receive financing, then pay back the loan based on the agreed upon terms.

If you’re tired of puzzling over real estate financing options, Azibo Mortgage Solutions is here to help. Explore our platform and get connected with mortgage experts who will find you the right financing option for your unique rental property needs, in only a fraction of the time. 

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