Best Interest rates for 5 year Interest Only financing

[Daniel Domer]

Hello,

We are going to be doing some deals, where we sell the home to our tenants after 5 years. We are in search of the lowest rates on these properties, on a 5 year interest only financing package. We have 25% + into the homes in terms of equity and ontime monthly payments. Currently, we can leverage line of credit promotional packages through some of our bank relationships. One is at 4.5% fixed 5 yr term, interest only. Another is around 6%. 

Issue is, we will run out of borrowing power after a few here, so starting to see what else is out there in terms of interest only, low rate. Can assume 830+ on credit score, no debt, and high net worth. All the properties are single family homes in MN.

Anyone doing anything similar out there, or know any banks willing to do this on investment properties ? Thanks in advance!

[Chris Seveney]

Quote from @Daniel Domer:

Hello,

We are going to be doing some deals, where we sell the home to our tenants after 5 years. We are in search of the lowest rates on these properties, on a 5 year interest only financing package. We have 25% + into the homes in terms of equity and ontime monthly payments. Currently, we can leverage line of credit promotional packages through some of our bank relationships. One is at 4.5% fixed 5 yr term, interest only. Another is around 6%. 

Issue is, we will run out of borrowing power after a few here, so starting to see what else is out there in terms of interest only, low rate. Can assume 830+ on credit score, no debt, and high net worth. All the properties are single family homes in MN.

Anyone doing anything similar out there, or know any banks willing to do this on investment properties ? Thanks in advance!

if you are getting 4.5% - 6% take it. If you go DSCR at 5 year I/O and no prepay you are going to be well above those numbers..