What Is An Investment Property Loan?
A non-owner-occupied conventional loan of 75% of the lower of appraised value or the purchase price is the most often available loan from the majority of lending institutions, but Fannie Mae and Freddie Mac will make financing available up to the 85% loan-to-value level. Since mortgage insurance is not available for investment properties, investment purchase loans usually require a minimum 20% down payment.
Conventional lenders generally charge a quarter to one-half percent more interest on a loan for a rental home than if the same home were used as the primary address for the borrower. Of all kinds of residential rental properties, the single-family home offers the lowest interest rate.
If your current owner occupied home has enough equity, you may be able to use it to buy additional property, by doing a cash out refinance.
We also offer alternative lending for experienced real estate investors based on the debt service coverage ratio (DSCR) of the property. Investors can put as little as 15% down and qualify off of the cash flow of the investment property
"Today I closed on an awesome house in Tampa's Old Seminole Heights neighborhood. Fintech Mortgage was with me every step of the way from pre-approval to closing. They took the time to explain the differences between FHA and Conventional loans to me, with superior knowledge of the mortgage/loan process helped me to choose the perfect loan for me and my situation."
Had the privilege of partnering with Brian, Dustin, Shayna and company for many of my clients in the St. Pete/South Tampa area. I could also depend on them to be responsive to my clients and meet all deadlines per contracts for smooth home purchasing! I continue to recommend them to my clients and have no reason not to in the future.