Hi there! I’m Ryan from Propelio, and today we’re diving into an essential topic for real estate investors: conventional loans. We have an expert, Britney Washington, from First Choice Loans, to share her insights. Britney has a wealth of experience in the real estate world, especially with investors. Let’s go straight into her valuable advice.
Meet Britney Washington
Britney has a robust 15-year background in the real estate industry. She started in mortgages, moved to the title business, and is now full-time in loans. During her time in the title industry, she became known for her expertise, handling around 80% investor business. Now, she’s leveraging her marketing skills at First Choice Loans, helping investors navigate their financing options.
Conventional Loans vs. Hard Money Loans
Britney explains that while hard money loans are popular among new investors, conventional loans offer significant benefits to those who can afford them.
The Basics of Conventional Loans for Investors
- Loan Limits: Under Fannie Mae guidelines, investors can have up to 10 loans simultaneously. For Freddie Mac, the limit is six.
- Lower Rates: Conventional loans typically offer lower interest rates compared to hard money loans.
- Longer Terms: These loans come with longer loan terms, meaning lower monthly payments.
- Stability: No balloon payments or prepayment penalties, making them a stable choice for long-term investments.
Hard Money Loans
- Higher Rates: Interest rates for hard money loans are usually around 10% or more.
- Short Terms: These loans come with shorter repayment terms.
- Less Down Payment: They require less money down, which is beneficial for those starting with less capital.
Deciding between Conventional and Hard Money
When to Choose Conventional Loans
If you have money saved and prefer lower interest rates with longer repayment terms, conventional loans are the way to go. They provide stability and reduce the overall cost of borrowing.
When to Choose Hard Money Loans
If you are new to investing and need quick access to funds with minimal down payment, hard money loans might be a better option. They allow you to use someone else’s money to gain initial traction in the market.
The Investor Clientele Shift
Britney shares that her shift from title to loans also shifted her clientele. While she still works with some investor clients, her focus is now 80% on conventional residential loans. However, she continues to stay connected with her investor clients, helping them find the best financing solutions.
Staying Connected with Industry Expertise
Britney remains a go-to expert for title questions even after moving to loans. This underscores the importance of having a reliable team in real estate investments. A good escrow agent and marketing expert can make a significant difference in your investment success.
Benefits of Conventional Loans
- Lower Interest Rates: Save on interest payments over the life of the loan.
- Longer Loan Terms: Spread out payments for more manageable monthly costs.
- No Balloon Payments or Prepayment Penalties: Provides financial stability and flexibility.
Connect with Britney Washington
If you’re an investor looking to explore conventional loan options, reach out to Britney Washington at First Choice Loans. She, along with her outstanding team of loan officers, is ready to assist you. Britney is active on Facebook, sharing helpful tips and industry insights regularly.
Conclusion
Choosing the right type of loan is crucial for your real estate investment strategy. While hard money loans offer quick cash, conventional loans provide stable, long-term financial benefits for those who qualify. If you’re looking to get involved in real estate investing, consider your financial situation and reach out to experts like Britney for guidance.
Stay tuned for more insights from Britney, including a deep dive into the title and escrow process in upcoming posts.
Don’t forget to like, share, and follow us for more valuable content!
Note: For direct inquiries, you can contact Britney Washington through her provided social media handles and contact details on the First Choice Loans website.
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