Today’s Current Investment Property Rate Search

Investment Property Loans

Investment property loans are loans used to buy or refinance a property that is not the borrower’s primary home.  Typically, loans used for a second home or rental property require a minimum of 20-25% down payment since mortgage insurance is not available for investment properties. You’ll also need to have 2 years of property management experience if you want to use your property’s rental income to qualify for a investment property loan in most cases and may be required to show two years of rental income of some kind.  The rental income may not need to be the same type of rental income that the investment property will generate.

Certain lenders may offer investment property loans that require less than 20% down but be prepared for a much higher rate.  For example, a 1-unit, investment property purchase using a 15% down payment may have a 1-3% higher rate than offered for a 20-25% down purchase . For a 2-4 unit investment property purchase, a 25% down payment is almost always required.

Credit Score – The minimum credit score needed is at least a 620.