An investment property loan is a mortgage for the purchase of an income-producing property. That includes buying properties to generate rental income or to renovate and sell for a profit (more commonly known as house flipping). There are also short-term hard money investor loans, allowing you to buy properties you plan to repair and sell quickly.
How do investment property loans work?
Investment property loans are a lot like ‘standard’ mortgages, provided you want to buy a home with 1-4 units. Verify your investment property loan eligibility. Start here The application and approval processes work the same way, and mortgage rates are usually less than 1% higher than for a standard mortgage.
What are the different types of investment property loans?
There are three main loan types used to finance investment properties: Check your investment property loan options. Start here Most of those seeking investment property loans will require conventional mortgages. The majority of these are ‘conforming mortgages,’ meaning they conform to lending rules set by Fannie Mae and Freddie Mac.
