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Are you thinking about buying an investment home in the city of Bellevue, Washington? Wondering what kind of mortgage strategies are available?
You’re in the right place. Below, we’ve created a guide for investing in Bellevue real estate, with a special emphasis on mortgage financing options.
When it comes to Bellevue real estate investing, every housing market has its pros and cons. The goal is to maximize the former while minimizing the latter. Bellevue, Washington is one of those markets that offers a lot of upside with very few downsides.
Here are some reasons to consider buying Bellevue investment properties:
Bellevue and the surrounding area is home to major tech companies like Microsoft and Amazon. The city attracts skilled workers from all over the world, increasing demand for housing on both the rental and purchase side. This makes Bellevue, Washington an ideal housing market for investors.
Bellevue offers its residents highly-rated schools, safe neighborhoods, and abundant green spaces. There’s also a wealth of shopping, dining, and recreational opportunities across the city. These and other amenities attract new residents from elsewhere, sustaining housing demand.
The Bellevue rental market is popular thanks to the city’s desirable lifestyle and proximity to major employment centers. At the same time, rental prices in the area tend to run higher than the national average. The high-demand rental market in Bellevue gives real estate investors the potential for an attractive ROI.
Bellevue has a long history of steady home price gains. Limited housing stock and strong demand from buyers put upward pressure on home prices, making it an attractive and potentially rewarding market for investors.
The population of Bellevue is currently around 153,000 people. It’s the fifth-largest city in Washington. According to city officials, the population will likely continue growing and exceed 160,000 by 2035. This trend, combined with limited building opportunities, will sustain housing demand for the foreseeable future.
In conclusion: Bellevue, Washington, offers real estate investors a combination of economic stability, high housing demand, and strong potential for property value appreciation.
Bellevue property investors have a lot of mortgage financing options to choose from. But most buyers investing in real estate use one of the five types of loans mentioned below.
Some investors prefer conventional mortgage loans because they offer lower interest rates and longer repayment terms, compared to the other options below. This can deliver significant savings over time.
On the other hand, conventional loans might require more documents and have stricter qualification criteria for borrowers. So they might not be the best option for Bellevue real estate investors who need access to quick cash (e.g., house flippers).
Hard money loans are short-term loans mainly used for fix-and-flip properties. But they have other uses as well, including bridge loan scenarios.
Typically offered by private lenders, hard money loans are secured by the property itself rather than the borrower’s credit and financial profile. They usually have higher interest rates when compared to conventional financing. Hard money loans are some of the best loans for real estate investors who need financing in a hurry.
Private money loans are provided by individuals or investor groups, rather than through traditional banks and lenders. They offer a financing alternative for those who can’t qualify for conventional mortgage financing.
Private money loans usually come with higher interest rates and shorter terms, compared to regular home loans. That’s because they carry a higher level of risk for the lender. Even so, they can offer flexibility for investors who need quick financing for property investment in Bellevue.
Home equity loans in Bellevue allow investors to borrow against the equity in their primary residence, offering a way to fund investment properties. You’re basically leveraging the value of an asset you already have in order to purchase another.
Equity loans typically offer lower interest rates than personal loans or credit cards, though they do come with closing costs. This option is ideal for homeowners with significant home equity who need to borrow a substantial loan amount.
DSCR loans are another non-traditional financing option for real estate investors in Bellevue, Washington.
Also known as “cash flow loans,” DSCR financing allows borrowers to qualify for a home loan without relying on their personal income. Instead, they use the property’s estimated income or cash flow for qualification purposes.
These loans are popular with investors purchasing income-generating rental properties. They offer a streamlined documentation process and quick closing times.
The real estate market in Bellevue, WA offers great investment opportunities and ROI potential for various reasons. But it mostly comes down to supply and demand.
This housing market tends to experience very low supply levels relative to buyer demand. Most years, there aren’t nearly enough homes on the market to meet the demand from buyers.
When this report was published, the Bellevue real estate market had about a one-month supply of homes for sale, well below the national average.
It’s also an expensive housing market, even by Seattle metro area standards. Here are the median home values as of summer 2024, according to Zillow:
These numbers will likely change by the time you read this guide. But they’ll still illustrate the price difference between Bellevue, the surrounding metro area, and the state as a whole.
Also worth knowing: the city of Bellevue has a median household income of $153,799, and there are currently more than 64,000 housing units across the city.
If you’re looking to purchase a property for investment purposes, you should keep your finger on the pulse of real estate trends in Bellevue. That way, you can time your entry into the market properly so that you snag the best purchase price and a mortgage rate you can afford. That’s where Sammamish Mortgage comes into the picture.
Are you thinking of investing in Bellevue real estate some time soon? If so, we’re here to help. Sammamish Mortgage is a mortgage company that works with home buyers and homeowners in Bellevue, WA, and all across the Pacific Northwest. Please contact us if you have questions about mortgage financing, to get an instant rate quote, or would like to apply for a loan.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.