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Mortgage guidelines for Investment Property
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2012 Sep 17, 1:10am 2,449 views 2 comments
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Eman
2012 Sep 17, 2:10am
David,
To get the best interest rate for an investment property, you need to put a 25% down payment. Interest rate on an investment property is typically 0.5% higher than owner-occupy.
Only homeopath offers 10% down on investment properties, but these properties typically sell at a premium price so there is no free lunch.
With respect to the 0.91% of purchase price, it doesn't mean much. Say a $50k house renting for $450/month is not the same as a $200k house renting for $1,800. The maintenance is likely the same for both house if they are the same size, but at different location.
Hope it makes sense to you and good luck with your investment. It's a bold step in the right direction in my opinion.
Can anyone give me guidance on the mortgage underwriting guidelines for a investment rental property? Is it possible to get a 80% LTV loan with 30 year payback? 90% LTV? 30 year fixed? 5/1 ARM? Are all of these products available?
What are the typical interest rates vs. rates a owner occupied buyer would face?
This would be my first investment property.
According to my market analysis, monthly rent would be .91% of purchase price. This property would be in my hometown, which is 500 miles from where I currently live. I have a great deal of contacts in the town (my parents still live there) so maintenance would not be an issue.
#housing