Negotiating a good deal is almost an American passion. It seems some things are sought simply for the hunt as much as it is for the kill. And finding and securing the best mortgage rate certainly qualifies in that consumer realm. Getting the best interest rate can be a challenge but what are the rules for getting the best interest rate for rental property?
First, what is considered rental property in a lender's mind? Rental property is property that is not occupied by the owner while also receiving income from tenants who reside or use the property for their own benefit.
And second, what are the additional requirements a borrower must have before a mortgage company will place an investment property loan?
The biggest difference between owner occupied properties and rental ones is the requirement for more down payment fund from the borrower. While conventional mortgage make allowances for down payments as low as five percent, the minimum down payment for an investment property is 15 percent.
However, just as with owner occupied loans, any conventional mortgage loan issued with less than 20 percent down requires mortgage insurance. And even though a lender may offer a conventional loan with less than 20 percent down finding a mortgage insurer to issue such a policy on an investment property is a challenge, if not impossible.
The minimum down payment for a conventional mortgage loan for practical purposes is 20 percent down. And if you can put down 25 ทาวน์โฮมมือสอง ราคาถูก percent instead of 20 percent down your interest rate will be a little better.
Another requirement for investment property loans is a solid credit score. Lenders can issue different rates for investment properties based upon a credit score but the best rates are reserved for those with a credit score above 740.
By combining a minimum down payment of 25 percent and a credit score above 740, you'll have secured the best investment property rates in the industry and making more money at the same time.
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