What’s a Competitive APR for a 400K Home?

There’s no getting away from it… Mortgage rates are higher now than they’ve been for over two decades.  

The average rate, according to Freddie Mac in August 2023, is an eye-watering 7.23% on a 30-year fixed-term rate. While shorter terms (typically over 10 or 15 years) can be found below 7%, this still represents a significantly larger outgoing than has typically been enjoyed over recent house-buying history. The same applies no matter whether you’re looking to borrow for a home to live in or for an investment property, 

While we can’t sweeten these figures if you’re simply trying to get on the housing ladder, for those looking to plow their money into real estate for long-term gain, these historically high-interest rates needn’t halt your plans…

The Secrets Behind Investing in a 400K Home (and why the APR doesn’t matter…)

• How the savvy investor achieves a competitive APR for a 400K home (or any amount you choose)
• BRRRR, fix & flip, or DSCR…

How the savvy investor achieves a competitive APR for a 400K home (or any amount you choose)

OK, so the best (only!) way to get a regular mortgage at the lowest APR is to have an excellent credit rating. If you don’t, then consider what you can do over the short term to improve yours. However, the banks aren’t the only place from which you can legitimately borrow money. There are many alternative lenders to choose from. Indeed, for investors especially—and those who can’t prove income and/or employment verification—borrowing from such a financial institution can be the only way to kick-start your property investment journey.

Don’t worry… Such direct lending options are perfectly legal. Just be sure to carry out due diligence to ensure you understand the small print.

BRRRR, fix & flip, or DSCR

A BRRRR loan provides the finance for you to buy a property, rehab it, rent it out, refinance against the property, and then repeat the process. You’ve probably heard of fix & flip loans, whereby you borrow the money to buy a doer-upper and fund the works, then sell the property for a profit. Another option for property investors is known as a debt-service coverage ratio (DSCR) loan. This is where the amount of cash flow that you’ll receive from renting out the property you plan to buy is assessed to ensure you can pay off the monthly loan repayments.

The underlying aspects that all these types of borrowing have in common are that you don’t need to have a huge amount of capital to put down (if any), close agreements are fast, and you can get a competitive APR on the amount borrowed. While the average interest rate on such loans still hovers at or just below the 7% mark, some criteria mean this could be pushed lower—even as low as the magical 5% range (or even less, in some extraordinary cases).

The art of the possible is all in the exploring. As each loan will be determined on its merits, you’ll need to speak directly to such lenders to see what deals they can offer.

Ready to Discuss Numbers? Head to BRRRR Loans and Let’s Get the Ball Rolling…

At BRRRR Loans, we’re ready and waiting to make your property investing dreams come true. Whether you want to borrow $100K, $400K, $1,000,000, or more, we provide the funds you need at competitive interest rates. Real estate investment opportunities become more lucrative when interest rates rise, which is why we’re lending more than ever to investors who know that the time is ripe to maximize their gains.

Discover more about us at https://www.brrrr.com and call us today for a no-obligation, completely confidential chat about your borrowing needs.