Top Real Estate Loans in Kansas City
Choosing the Correct Loan Program
Choosing the correct loan program is essential when you need fix and flip funding for real estate purchases in Kansas City. Crossroads Investment Lending is a private money lender offering hassle-free real estate investment loans for your fix and flips. It’s important to select the kind of loan that fits your needs. Things start moving fast once you find the right home to buy. There are many factors that go into choosing the right type of mortgage, and we want you to be educated. We’re always here if you have questions, but we encourage you to read on to learn more about real estate investing and choosing the proper loan.
About Your Real Estate Loan Options
There are many different types of loans to consider when buying a house in Kansas City. Whether you’re buying a home to live in or to fix and flip, you’ll need a source of funding for your purchase. Be sure to consider the following options when it comes to real estate loans:
- Loan terms – Your loan term is the amount of time you have to repay the loan. The loan term affects your interest rate and how much interest you’ll pay over the life of the loan, as well as your monthly principal and interest payment. The most common loan terms are 15 and 30 years. The benefits of a shorter-term loan include lower interest rates and lower total cost, but the drawback is often a higher monthly payment. Longer-term loans usually have lower monthly payments but higher interest rates and total costs.
- Interest rate types – Similar to loan terms, there are two main options when it comes to interest rate types. Those two types are fixed and adjustable. Your choice affects how much interest you will pay over the life of the loan, as well as whether your interest rate can change and whether your monthly principal and interest payment can change. With a fixed-rate mortgage, your rate does not change, and your monthly principal and interest payments stay the same. This option is used by most homeowners. It allows for lower risk with no surprises but comes with a higher interest rate. Adjustable-rate mortgage rates can increase or decrease based on the market, making them a higher risk but offering a lower interest rate to start.
- Loan types – When it comes to loan types, you have more choices. While many buyers choose a conventional or FHA loan, there are also special programs available. Choosing the right loan type will affect how much you need for a down payment, the total cost of your loan, including interest and mortgage insurance, and how much you can borrow, which impacts the price range you can consider. The majority of loans are conventional loans, which typically cost less than FHA loans but can be more difficult to obtain. FHA loans offer a low down payment and are available to people with lower credit scores. There are also VA loans for veterans, service members, and their surviving spouses. USDA loans are for low to middle-income borrowers in rural areas, and local loans can be used by those same borrowers as well as first-time homebuyers or public service employees.
Tips for Choosing the Right Real Estate Loan
Real estate investing can be very lucrative, but you have to know what you’re doing. Choosing the right loan program can save you money and make your flip easier. Check out the following tips for selecting the right real estate loan:
- Know what kind of loan you want before requesting loan estimates
- Consider how long you plan to keep the loan
- Figure out how much you can afford
- Set up a savings goal for the upfront costs
- Consider the length of the mortgage loan
- Know how mortgage interest rates work
Transactional Funding from Crossroads Investment Lending
If you need funding for your fix and flip in Kansas City, turn to the experts at Crossroads Investment Lending. We offer investor rehab loans, which can be short term for faster profits or long term for rental home investments. We also offer bridge loans which are perfect during transition times, such as in between investments. Hard money loans are ideal for first-time home flippers and are usually taken out over one to six months and paid back with the profits from the sale of the home. Reach out to our team to learn more about the benefits of choosing the correct loan program. Our experienced and professional team offers fast and efficient private money lending and common sense underwriting. We have proven rehab success on nearly 1,000 houses and offer clear and concise lending options for home improvement. Contact us today for a free estimate.
Why Choose Us?
- Family Owned & Operated
- Local Fix & Flip Finance Experience
- All Credit Scores Considered
- Close in 7-10 Business Days
- Short Term Loan for Investment Projects