Ohio Investment Property Loans

Why Buy an Investment Property in Ohio?

Ohio’s real estate market is thriving thanks to several key factors. The state boasts a strong and diverse economy, with major industries including healthcare, manufacturing, and technology. This economic stability has contributed to steady population growth, particularly in urban centers like Columbus, Cincinnati, and Cleveland. As a result, the demand for housing has increased, creating a favorable environment for real estate investors.

Investing in Ohio real estate offers numerous benefits, including the potential for long-term appreciation, stable cash flow from rental property income, and the ability to leverage your investment through financing. According to Zillow, the median home value in Ohio has risen by 5.3% from 2024 to 2024, reaching $230,250. Real estate investors in Ohio can also take advantage of various tax benefits, which can increase their return on investment.

Investors in Ohio can explore various strategies, such as long-term rentals, short-term rentals, vacation rentals, and Airbnb properties. The state’s diverse housing stock, ranging from single-family homes to multi-unit buildings, caters to a wide array of investment approaches.

Ohio Investment Property Loan Types

Griffin Funding offers a comprehensive suite of investment property loans in Cincinnati and throughout the state of Ohio, designed to meet the unique needs of real estate investors. Here’s a detailed look at the different types of loans for investment properties in Ohio:

Conventional Loans

Conventional loans are a popular choice among real estate investors in Ohio. These loans are not backed by the government and typically require a down payment of 15-25%, depending on the lender and the specifics of the loan. Conventional investment property loans offer competitive interest rates, with loan amounts of up to $766,550 for single-family homes in most Ohio counties.

DSCR Loans

DSCR loans help borrowers qualify for investment property loans by using the rental income potential of the property instead of personal income situations. This rental property loan in Ohio is ideal for investors who own multiple properties or are self-employed.

DSCR loans typically require a minimum credit score of 620 and a down payment of 20-25%. The property’s DSCR, which is calculated by dividing the net rental income by the annual debt service (mortgage), must be at least 1.25 for most lenders. However, at Griffin Funding, we can fund loans with a DSCR of less than 1.0 in some cases.

Bank Statement Loans

Bank statement loans are an ideal option for self-employed investors or those with variable income who don’t meet the strict traditional income documentation requirements of conventional mortgage loans. With these loans, borrowers can show lenders 12-24 months of bank statements to prove their income.

VA Loans

VA loans are only available for eligible veterans, active-duty military members, and their surviving spouses. While primarily used for primary residences, VA loans can also be used to purchase multi-unit properties, with the investor living in one unit and renting out the others. VA loans offer competitive interest rates, no private mortgage insurance (PMI) requirement, and the potential for 100% financing.

FHA Loans

FHA loans offer more lenient qualification requirements than conventional loans. These loans can be used to purchase multi-unit properties, with the investor living in one unit and renting out the others.

If you go this route, you’ll need to have a down payment of at least 3.5%.

Home Equity Loans

Home equity loans allow Ohio investors to leverage the equity in their homes or other existing properties to purchase additional investment properties. This investment loan type provides a lump sum of cash based on the equity in the borrower’s current property, which can be used as a down payment or to cover the entire cost of a new investment property. Home equity loans typically offer fixed interest rates and terms of 5-30 years.

Asset-Based Loans

Asset-based loans are designed for investors who have significant assets, such as stocks, bonds, or retirement accounts, but may not meet the income requirements for traditional loans. These loans are based on the value of the borrower’s assets rather than their credit score or income.

Private Money Loans

Private money loans are offered by private investors. These loans often have more lenient qualification requirements but may come with higher interest rates and shorter terms. Private money loans are ideal for investors who need quick funding, have less-than-perfect credit, or are looking to finance a unique investment opportunity.

Getting an Investment Property Loan in Ohio

To secure an investment property loan in Ohio, follow these essential steps:

1. Determine your investment strategy: Consider your goals and choose a property type that aligns with your goals and needs. Are you interested in a multi-unit building with long-term tenants, a vacation rental, or a fix-and-flip opportunity?
2. Identify the appropriate financing option: Based on your investment strategy, financial situation, and qualifications, select the investment property loan that best suits your needs.
3. Find a property and apply for financing: Work with a local real estate agent to identify a property that meets your criteria, then apply for financing with a trusted lender like Griffin Funding.

Why Choose Griffin Funding?

Griffin Funding is a premier investment property lender in Ohio, offering:

• Extensive experience: Our team has years of experience in the real estate financing industry. You’ll get the guidance you need throughout the process.
• Flexible solutions: We offer a range of investment property loan options tailored to your unique needs, allowing you to choose the financing solution that best aligns with your goals.
• Personalized service: We offer personalized service that allows us to work closely with our borrowers to understand their goals and help them succeed.
• Competitive rates: With competitive rates, you’ll save more over the life of the loan and maximize your investment potential.

Use the Griffin Gold app to easily manage your real estate portfolio and take advantage of the benefits of real estate investing, all from the palm of your hand.

Secure a Rental Property Loan in Ohio

Ready to start investing in real estate and take advantage of the thriving Ohio market? Griffin Funding is here to help. Our experienced team of mortgage experts will work closely with you to find the best investment property loan for your needs and guide you through the entire financing process.

Don’t miss out on the opportunity to build wealth through real estate investing in Ohio. Apply now.