Investment Property Loans

Rental income can give your finances a new lease on life.

A low-cost loan could punch your ticket to checks from tenants

Here’s how a Coastal Investment Property Loan could help you bank better:

  • You can borrow up to $484,350 to purchase condos, single-family homes or other investment properties.
  • Flexible terms allow you to borrow up to 85% of the property value. That means a down payment of only 15%.
  • Choose from 10-, 15-, 20- and 30-year fixed-rate mortgages. A fixed rate means your rate will never increase over the life of the loan.
  • The rental income from the property being purchased may be used for loan qualifying purposes under certain circumstances.
  • Coastal charges a low underwriting fee of $400. You receive substantial savings because there are no charges for document prep or credit reports.
  • Your loan will always be serviced by Coastal. If you have questions in the future, you’ll never have to deal with a far-off megabank.
  • This loan is eligible for an annual Loyalty Bonus payout.

Just the Facts

Rent checks are no fun to write. But you might like them more if you’re on the receiving end.

Across North Carolina, people are looking for more financial security for their families. But there are only so many hours a day that anyone can work. That’s why many of our members are warming to the idea of buying investment properties in North Carolina and elsewhere.

The concept is simple. You borrow money, buy a property, fix it up if it needs work, and then rent it out. The monthly checks from your tenants cover the loan repayment costs and net you a tidy profit. Coastal can start you off on the right foot, offering low interest rates, low fees and low down payment requirements. From there, the success of the venture is up to you. When it comes to generating new income, we wish you the best outcome.

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I was able to buy my first home on my own without using all of my savings.
Margaret H.

Frequently Asked Questions

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change.

If everything seems to be in good standing on your application, you will be able to obtain a pre-qualification letter. Although it is not necessary to be pre-qualified, it is highly recommended before making an offer. It demonstrates to both you and to sellers how much house you can afford. It can be frustrating for both buyers and sellers to agree upon an offer, only to find out the buyer is unable to qualify for it.

Pre-qualification is based solely on the data you give in your loan application. From this information, your lender can provide a ballpark estimate of how much you can borrow, but your pre-qualified amount isn’t yet a definite thing. Pre-approval is a commitment in writing for an exact loan amount, after your lender has taken a closer look at, and verified, your financial situation and history.

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on several factors, including your current financial picture and how long you intend to keep your house. Coastal Credit Union can help you evaluate your choices and help you make the most appropriate decision.

As a first-time buyer, the first step in purchasing a home is to determine what exactly you can afford. By using one of the several calculators on our website, you will be able to figure out affordability in relation to finances, credit score and other information.

For a $250,000 loan for a tem of 30 years with a 4.50% APR, the monthly payment is $1,267.00.  Taxes and insurance are not included in this payment example and that the actual payment obligation could be greater.  All loans are subject to approval.

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