When it comes to financing investment properties, there are several types of loans available, each with its own features and benefits. Here’s a breakdown of the different types of investment property loans:

Conventional Investment Property Loans: Standard mortgages not backed by government agencies. These loans are offered by private lenders and typically require a higher credit score and down payment compared to government-backed loans.

FHA Investment Property Loans: Loans insured by the Federal Housing Administration (FHA). Although primarily intended for primary residences, FHA loans can sometimes be used for multi-family properties where the borrower lives in one unit.

Interest-Only Investment Loan: Allows for interest-only payments during the initial period, helping to manage cash flow early in the investment.

More specialty loan programs may be available. If you’re interested in expanding your investment property portfolio, we can help.

To qualify for an Investment Property Loan, you typically need a good credit score, a substantial down payment (often 15-30%), and proof of income. Your debt-to-income ratio, investment experience, and the property’s potential rental income may also be considered.

The minimum down payment for Investment Property Loans generally ranges from 15% to 30% of the property’s purchase price. The exact amount depends on the loan type and your financial profile. Higher down payments may result in better loan terms and lower interest rates.

Interest rates for Investment Property Loans are typically higher than those for primary residence loans due to the increased risk to lenders. Rates can vary based on the loan type, borrower’s creditworthiness, and market conditions. It's essential to compare rates and terms to find the best deal.

With certain loan programs, projected rental income from the investment property may be considered to help qualify for a loan. A detailed rental income analysis may be required. It’s also possible that only a portion of the projected income will be considered when assessing your application.

Yes, it may be possible to finance multiple properties through a single investment property loan. However, this will depend on your financial profile, including credit score, income, and experience managing rental properties. Multi-property loans may require higher down payments and stricter qualifications.

You may have the option to finance multiple investment properties simultaneously, though the requirements can be more stringent. You'll need a solid financial profile, higher credit scores, and enough cash reserves to cover potential vacancies or maintenance across all properties.

Yes, a cash-out refinance on your primary residence can free up funds to purchase an investment property. This strategy allows you to leverage the equity in your home to grow your investment portfolio, but it’s important to weigh the risks and potential changes in your primary home mortgage terms.

A Cash-Out Refinance allows you to access the equity in your investment property by refinancing your existing mortgage and taking out additional cash. This can be used for property improvements, acquiring new investments, or consolidating debt, while potentially adjusting your mortgage terms.

Yes, as long as the property generates rental income and is primarily used as an investment. Be aware: Additional requirements regarding the property’s rental occupancy and income potential may apply. If you’re interested in this scenario, we would be happy to go over all the details with you.