Getting investment financing for Silver Spring, MD real estate can be tricky. Thanks to stringent lending practices and wary banks, investors face more hurdles than owner-occupants when trying to get a loan.
Despite the fact that one in every five homes is sold to a real estate investor, the Office of the Comptroller of the Currency still mandates that financing for single family rentals is treated the same (with respect to risk) as commercial real estate loans, not residential loans.
According to a recent bulletin released by the OCC, “Borrowers may finance multiple properties through one or more financial institutions but underwriting standards and the complexity of risk analysis should increase as the number of properties financed for a borrower and related parties increases. When a borrower finances multiple IORR (investor-owned) properties, a comprehensive global cash flow analysis of the borrower is generally necessary to properly underwrite and administer the credit relationship. In such cases, bank management should analyze and administer the relationship on a consolidated basis.”
If you would like to get financing for Silver Spring, MD investment properties, here are some things you can anticipate: > > How to Get Investment Financing for Silver Spring, MD Real Estate