Investment / Rental Property Loans
Residential Investment Property Loans / Rental Property Mortgages
Residential Investment Property home loans are different from other home loans due to their occupancy status. They are also known as Investment Property Loans. They do require a larger down payment than normal, 20% is the current minimum. The rates are higher than an owner occupied loan due to risk factors that banks charge so you should not be surprised to see a rate that is higher than you would get normally for an owner occupied purchase or refinance. The fees may also be a little bit higher as well due to risk pricing.
Most investors are in the market for the long haul and want to make sure their properties “cash flow” lenders want to see this as well. This is a function of the rental income being more than the mortgage payment (PITI*) so you don’t have to “feed” the loan payment. Worst case scenario it may be a break even payment to rent situation. This is not the same as your tax situation – which you should discuss with your tax professional.
Conventional loans that you would use to buy your owner occupied home are available for your rental property as well. When we go over your financial situation we can discuss the impacts of the different types of loans on your overall goals.
View our Disclosures page for details.
Call Theresa Springer (MLO #70667/NMLS #70667) today at 360-798-4161 to see the difference that working with an experienced home loan professional can make for you.
Word on the Street...
"Theresa can be counted on to take care of clients in a personable manner. She is accurate and timely, and has great knowledge in how to make a transaction work for the customer." -- Ed Howard, Senior Vice President/ Team Leader, Columbia State Bank
Testimonials appearing on this site are individual experiences from those who have worked with Theresa Springer. They are individual results and results may vary.