Definition
Investment mortgages have higher rates (0.5-1.5% above primary residence rates) and require 20-25% down payment. Lenders focus on NOI and DSCR.
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Investment mortgages have higher rates (typically 0.5-1.5% above primary residence rates) and require 20-25% down payment. Lenders typically require 2 years of rental history or property appraisals proving income. Debt service coverage ratio (DSCR) requirements ensure the property's income covers debt payments. Most conventional loans go up to 10-20 rental properties.
Pro Tip
Compare investment mortgage rates from multiple lenders. Different banks offer different terms.
Example
An investor securing a $200,000 investment mortgage at 6.5% with 25% down payment ($50,000)