R e a l E s t a t e



Real Estate Bank Financing

Posted by yogi2011 on September 19, 2011 at 6:30 AM

Banks offer a variety of mortage loans and products. Getting a loan through a bank is the most common method of financing properties but not all investors qualify. If you have steady income that you can prove (W-2 forms from your employer), have a good credit score (680 or higher), and have a down payment (20% or more), you have the greatest chances of being approved for a loan through a conventional bank when you are investing in real estate.


Fixed: Both the interest rate and the monthly payment are fixed.

Flexible rate: Both the interest rate and payment are flexible and change according to market prices and situation.

Interest only: Borrower pays only the interest on the loan for a number of years and during that time none of the principal is paid off.

Balloon mortgage: Both the interest rate and the monthly payment are fixed for a certain length of time, but at the end of the short-term loan, a much larger "balloon" payment is due for the balance.

Assumable mortgage: Both fixed and flexible rate mortgages can be assumable. A borrower simply takes over someone's else's payments and becomes the new owner. The original owner gives up their ownership of a property without the new borrower taking out their own new loan.

Categories: None

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.

Already a member? Sign In


Sponsor Ads

Subscribe To Our Site

Send to a friend

Follow me on Twitter

Share on Facebook

Share on Facebook

Google +1 Button

Facebook Fanpage Box

free counters

Proud Pinoy

Proudly Pinoy!