Our 5 point Lending Criteria

WHY THIS CRITERIA?

Homes above the FHA cap are statistically more likely to experience drastic fluctuations in value and can be more susceptible to local and overall market depreciation. Homes in the 5-point realm tend to be more resilient to these influences.

1. Property Type

Why 1-4 Units?

This is important. When you invest within these parameters, you can attract a larger segment of the market, including FHA buyers. This increases your ability to appeal to more people in more demographics.

2. Sale Price

Why price your home at or below FHA requirements?

FHA loans bring home ownership into reach for first-time home buyers who might have a hard time getting approved with conventional lenders. This increases your ability to sell your property faster and broadens your ability to attract more potential buyers.

3. Size of House

Why a smaller home with no more than 5 bedrooms and 3 baths?

Millennials and Boomers are the two segments expected to dominate the market in the next five years. Both of these segments are looking at smaller homes: Millennials because they’re just starting out; Boomers because they’re downsizing. Candace Taylor of The Wall Street Journal wrote, “These days, buyers of all ages eschew the large, ornate houses… in favor of smaller, more modern-looking alternatives.”

4. Property Features

Why 5 bed 3 bath Maximum?

Both Boomers and Millennials are looking for less upkeep: Boomers because they’re getting older and Millennials because they’re just starting out. More acreage also means more expense.

5. Size of the Property

Why less than 1/2 acre?

Both Boomers and Millennials are looking for less upkeep: Boomers because they’re getting older and Millennials because they’re just starting out. More acreage also means more expense.

"Choice Capital's slogan is "investing made simple." This keeps it simple while giving you the best chance to make money in real estate!"