Posted on: 11th Jan, 2011 12:16 pm
HI,
I was looking to find ideas on what type of mortgage to get for a second home to use as an investment. I have found a good deal and know I can make a profit renting the home. My only issue is all the mortgages seem to require a good chunk of money to put down and a higher interest rate since it is considered an investors mortgage. Does anyone know of and good loans/lenders for this type of situation?
Thanks!
I was looking to find ideas on what type of mortgage to get for a second home to use as an investment. I have found a good deal and know I can make a profit renting the home. My only issue is all the mortgages seem to require a good chunk of money to put down and a higher interest rate since it is considered an investors mortgage. Does anyone know of and good loans/lenders for this type of situation?
Thanks!
The best investor rates typically come from Fannie Mae and Freddie Mac and they require a minimum 20% down payment for single family and 25% down payment for 2 and 3 and 4 family.
If you have not owned and managed an investment property for two years or longer, Freddie Mac is not permitted, unless you qualify for the purchase mortgage without using any rental income fro the subject property.
FNMA does not have the requirement for two years management experience, but, lenders may require it anyway. You have to find one that does not require the two year management experience.
Investor rates are higher than owner occupied proeprties, but, rates are still historically low.
If you have not owned and managed an investment property for two years or longer, Freddie Mac is not permitted, unless you qualify for the purchase mortgage without using any rental income fro the subject property.
FNMA does not have the requirement for two years management experience, but, lenders may require it anyway. You have to find one that does not require the two year management experience.
Investor rates are higher than owner occupied proeprties, but, rates are still historically low.
If you want to have property investment out of a mortgage, then be it. But first, you have to consult first with a reliable mortgage broker so you'll know what are the grounds and scope for it. Try to weight and compare about different main types of investment property mortgage rates - ( fixed rate, adjustable mortgage rate and balloon mortgage rate). See what type will best apply for you.
