Residential Investment Property home
loans are different from other home loans due to their occupancy
status. They are also known as Investment Property Loans. They
do require a larger down payment than normal – 20% is the
current minimum. The rates are higher than an owner occupied
loan due to risk factors that banks charge so you should not
be surprised to see a rate that is higher than you would get
normally for an owner occupied purchase or refinance. The fees
may also be a little bit higher as well due to risk pricing.
Most investors are in the market for the long haul and want
to make sure their properties “cash flow” –lenders
want to see this as well. This is a function of the rental income
being more than the mortgage payment (PITI) so you don’t
have to “feed” the loan payment. Worst case scenario
it may be a break even payment to rent situation. This is not
the same as your tax situation - which you should discuss with
your tax professional.
Most of the loans that you would use to buy your owner occupied
home are available for your rental property as well. When we
go over your financial situation we can discuss the impacts of
the different types of loans on your overall goals.
Experience extraordinary...
Call Theresa Springer today at 360-210-7984 to
see the difference that working with an experienced home
loan professional can make for you. |
