Kansas Investment Property Loans

Buying an Investment Property in Kansas

The Kansas real estate market is competitive and continuing to grow, offering a unique opportunity for investors. With beautiful natural scenery, lots of outdoor recreation, and some of the best BBQ in the country, Kansas is a popular destination for homeowners and real estate investors.

According to data, the statewide average sale price for Kansas homes was $322,024 in August, a 4.5% increase from the previous year. Several Kansas cities are also listed among the top 100 housing markets for 2024, making it a desirable location for real estate.

There are also some tax benefits of investing in real estate in Kansas. While property taxes in Kansas are slightly above the national average, median home prices mean Kansas homeowners and investors pay slightly less than the national average.

Common real estate investments in Kansas include:

• Single- and multi-family rental properties in suburban areas
• Commercial properties in major cities like Wichita and Overland Park
• Vacation homes and Airbnb rentals in quiet, scenic areas
• The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat)

Types of Investment Property Loans in Kansas

There are several types of loans to choose from based on how you want to invest and what you can qualify for. At Griffin Funding, we offer everything from traditional mortgages to hard money loans in Kansas to help you find the right financing.

Conventional Loans

If you have the credit and income to qualify, conventional loans are a popular choice for investors. To qualify for a conventional loan, you need to meet credit and income requirements and make a minimum down payment. The required down payment is based on how many homes you’ve purchased and what type of property you’re investing in. Because conventional loans are harder to qualify for, they usually offer better interest rates and terms.

DSCR Loans

If you’re investing in a rental property that generates consistent cash flow, DSCR loans may be a better option. DSCR stands for debt service coverage ratio, which measures your cash flow versus your debt. If your rental property generates enough cash flow and you meet the credit score requirements, you may qualify for a DSCR loan in Kansas.

Bank Statement Loans

Bank statement loans are an alternative to conventional loans for self-employed individuals or business owners with irregular income. Instead of providing tax returns and other documents, you can use bank statements to apply for a loan.

Typically, you must provide 12 consecutive months of bank statements from a single account to apply for a loan.

VA Loans

Veteran Affairs (VA) home loans are available to veterans, servicemembers and eligible surviving spouses. VA loans usually provide lower interest rates than conventional loans, and you may not have to make a down payment. However, there are additional costs associated with VA loans, including a VA loan funding fee. You don’t have to pay this funding fee if you meet certain requirements.

FHA Loans

The Federal Housing Administration (FHA) offers insured FHA loans to people who may not be able to qualify for a conventional loan. If you can’t qualify for a traditional mortgage due to a low credit score or debt, you may be able to apply for an FHA loan instead. If your credit score is between 500 – 579, you have to make a minimum down payment of 10% of the purchase price. For credit scores of 580+, a minimum 3.5% down payment is required.

Home Equity Loans

Home equity loans let you leverage your home equity to secure funds for your next real estate investment. If you have significant equity in a home, you can use that equity as collateral to take out a loan. Keep in mind that you run the risk of losing your home if you don’t keep up with payments.

Lenders typically require between 15 and 20 percent equity to apply for a home equity loan.

Asset-Based Loans

Asset-based loans let you leverage your assets to purchase a home. Businesses can use the value of inventory, equipment, or commercial property as collateral to apply for a loan. Asset-based lending gives you more flexibility if you can qualify for a loan.

Private Money Loans

While most loans are provided by financial institutions, private money loans are offered by a private organization or individual. These loans are quick and convenient, so you can get approved and funded in a shorter time. Because you’re using your property as collateral to secure a loan, private money lenders don’t typically care about your credit score and debt.

How to Buy an Investment Property in Kansas

From the bustling city of Wichita to quieter suburban areas like Prairie Village, there are many real estate investment opportunities in Kansas. Here’s how you can start investing in Kansas real estate.

• Decide what to invest in. Do you want to use a fix and flip loan to renovate a home, or would you prefer a short-term rental in a popular vacation destination? Start by deciding what you want to invest in.

• Choose the right financing. We offer several types of investment property loans in Kansas, and the type of loan you choose affects your down payment, interest rate and loan terms. Do your research and choose a loan type that makes sense for you.

• Find a property and apply for a loan. Now that you’ve made the important decisions, it’s time to look for a property to invest in and apply for a loan. Traditional and hard money lenders in Kansas will review your financial documents and loan application and you can start investing when you’re approved.

Why Choose Griffin Funding

Griffin Funding empowers investors in Kansas and countless other states. Here’s why so many people choose Griffin Funding:

• We have extensive experience in the Kansas real estate market.
• We offer competitive interest rates to help you get more out of your investment.
• Our loan specialists offer personalized service.
• We have flexible loan options that allow you to choose financing that fits your situation.

You can use the Griffin Gold app to budget, plan your mortgage, and manage your credit.

Secure Your Investment Property Loan Rate in Kansas

With home prices rising and the state as whole growing rapidly, Kansas offers lucrative opportunities for real estate investors. Griffin Funding helps you secure the financing you need to start your investing journey.

Are you ready to invest in real estate in Kansas? Apply now or contact us to learn more.