mortgage for investment/rental property

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bogleboyz
Posts: 65
Joined: Sat May 21, 2016 2:30 am

mortgage for investment/rental property

Post by bogleboyz » Wed Jul 05, 2017 1:30 am

Hi all
we are looking into buying an investment/rental property.
We just had our offer accepted for a 4-plex unit.
Now comes the next step of applying for the loan.

Whats the best way of applying for loan for investment property?
I have emailed the mortgage person for BOA, wells fargo and a couple of smaller banks.
I am also contacting a mortgage broker

are there any major differences in the loans for investment property? I understand that the rates are on average 0.5% higher as compared to loans for owner occupied homes.
We are making 25% down payment

thanks

clutchied
Posts: 647
Joined: Mon Jan 05, 2015 12:11 pm

Re: mortgage for investment/rental property

Post by clutchied » Wed Jul 05, 2017 11:25 am

if you go with standard financing everything you said applies.

it's generally 25% down and about 0.5% higher for rates.


there are a myriad of other arrangements if you get further into it... I bought a 4-plex in january and I'm still pissed about the interest rate....

JGoneRiding
Posts: 1837
Joined: Tue Jul 15, 2014 3:26 pm

Re: mortgage for investment/rental property

Post by JGoneRiding » Wed Jul 05, 2017 12:39 pm

Sounds right to me. Insurance fyi is harder on 3 plex and higher. I would get right on that for getting a policy written. That alone might take 30 days. I have found allstate to be fast with such policies

pindevil
Posts: 76
Joined: Thu Apr 03, 2014 11:04 am

Re: mortgage for investment/rental property

Post by pindevil » Wed Jul 05, 2017 2:24 pm

In my experience big banks (bofa and wells) have the worst mortgage rates for investments. A good broker will be the best bet.

You should head on over to biggerpockets forum for advice.

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