Is there a diffence between a loan for an investment property and that for a home that the purchaser planned to live in?

Big difference, and the loan pricing shows it.. Investor loans are a more risky loan for investors, and because of such, they usually require larger down payments, and higher interest rates.. Some folks will try to "Cheat the System".. And say they are going to live in a property they're really purchasing as an investment.. The incentive is obviously a lower rate and lower down payment, however this is considered loan fraud and is illegal... .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Investment property loans on single family residential (SFR) property typically require 20% or more down and the interest rate is about .5% higher than an owner occupied loan. I have a product for 15% down on a SFR.

Yes, long story short: If it is investment you are limited to conventional financing. This means no FHA or VA financing. You may do an IRRRRL on an investment property with a VA loan if the home is already in a VA loan. You need to have 25% equity in the home if it is an investment property for both purchase and refinance. If you are claiming it as a primary residence be ready to prove that it is your primary through mail, utility bills, insurance, and the absence of schedule E income on your tax returns.

Absolutely! An owner occupied property will have better rates and a lower required down payment.

Absolutely. There is more risk when a person does not actually live in a property, therefore lenders want more of your investment into the property. Typically you are looking at 25-30% down payment if you are not occupying the property. Also,the rate may be higher. I hope this answers your question. Brenda

Yes, you can expect a higher interest rate and higher down payment in most cases. Contact me if you are looking in California or Illinois.Scott Gimbel - Serving Mortgage Clients for 25 years

Keep in mind you usually have to sing an affidavit stating you will be living there as you primary residence.

Yes, normally it is 20% for a single family home, If you are looking at a multifamily ( 1-4 units) you may be required to put an add'l 5% to 10% more down. Also, some Lenders and banks require past landlord experience. Before going with a lender, ask if this is a requirment for their investors. Rates tend to be about .5% higher due to risk.If you are looking to purchase in CT, we have programs with 20% down-Hope that helps,

Yes, investment properties require a larger down payment and have a slightly higher interest rate. Lenders view investment properties as more of a risk, since the borrower will not be living in the property, so that's why they require more of a down payment and a higher interest rate. You also cannot use FHA or VA funding for investment properties.

Will may also have to have 6 months of mortgage payments in a reserve account such as a savings account for an investment property. Not for the case for a house the purchaser plans to live in.

Yes investment property require more money down. We also have financing for 2nd homes. Those loans are for people that aren't going to live in it more then 6 months out of the year but aren't planning on renting it either. Those require less money down then investment property and they're usually isn't much difference if any in the rates on second homes and primary homes.

All is accurate, larger daown payment and higher rate for a investment property

Investment property = Larger down payment, higher interest rate. Owner occupied property = Small down payment, lower rate.

Investment properties require higher down payments and higher interest rates, due to the increased risk of default.

dozens of underwriting guidelines come into play here, not all of whichwere touched on in this thread - obviously - because there is no applicationto review. 1. the rate could be 1-2% higher! - then watch out for points and fees - especially if it's a condo.2. in general only 70% of rental income will be added.3. my in-laws recently were looking at an in-town condo they thought about financing withthe 2.4% rate from their credit union, (which i pointed outwas based on owner occupany, cuz all lenders run ads with the lowest rates possible).After talked over their scenario and came back at 3.9%, plus points, plus fees! (they didn't buy).

Yes based on occupancy risk, investment property financing is different.

YES, there are a few differences. The biggest being a bigger down payment requirement, a higher interest rate, and tougher qualification standards.