Tuesday, May 24, 2011

Financing for Investment Properties

Here's all you need to know about getting a mortgage for an investment property:

1. If you are buying a 1-unit investment property, you need 20% down. Fannie Mae underwriting guidelines say you only need 15% down. However, you also need mortgage insurance if you have less than 20% down, and no mortgage insurance company is willing to insure an investment property. You need the full 20% down to avoid the mortgage insurance.

2. If you are buying a 1-unit investment property and you put 25% down, the rate will be cheaper. The difference in the rate depends on the day you lock the interest rate, but it will always be less if you put the extra 5% down.

3. If you are buying a 2-4 unit investment property, you need 25% down.

That's it. Investment property loans are as easy to get approved as anything else. Use a good lender and it goes very smoothly.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

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