Real Estate investing

[La'Terrius Campbell]

I have fair credit and it is building fairly fast. I’m saving money for a down payment on my first rental property, but I was wondering what’s the best loan to get? What’s the best loan length for me also? Should I go with a 30 year loan?

[Torrell Palmason]

While building your credit try shooting for a 740+ as this will allow you to get the best market rates. You can get the loan with as much as 620 score however the rates will be higher than a 740+. 

As far as length you can go 30yr or 15yr depending on what you are wanting, if you can handle the higher payments of a 15yr it will get the loan paid off in half the time however a 30yr will be smaller payments that could potentially allow you to cash flow easier/quicker.

The best loan choice for a Rental would be a Fannie/Freddie with 15% down on a Single family. If you want 2-4 unit then the Fannie/Freddie would 25%. An alternative option would be to get an owner occupied FHA loan on a 2-4 unit with 3.5% down.