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Diano4ka-milaya [45]
4 years ago
14

In the eyes of a lender, when financing a residence, what advantage does an investor have over owner-occupied borrowers?

Business
1 answer:
RSB [31]4 years ago
6 0

Answer:

1. Collateral

2. Tax

Explanation:

In the eyes of a lender, when financing a residence, the advantages that an investor have over owner-occupied borrowers include the following:

1. Collateral: The investor can use the property he is financing to erve as a collateral for the loan he is taking out, but in owner-occupied properties, the collateral for the loan is not solely on the value of the property.

2. Tax: The interest on the loan taken by the investor is seen as a business expense and is treated as tax-deductible just like all corporate loan interests but the owner-occupied loan interests are not tax-deductible.

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