An Investment Property Program is a conventional investment in real estate bought with the intent of generating income, usually in the form of a one- to four-unit residential home.
Investment properties tend to have a higher mortgage, with more adherent lending standards, as well as higher down payments, than your standard property loan. Additionally, investment property comes with a number of factors that should be considered, including increased maintenance costs and upkeep.
When looking at investment property, you’ll need a down payment of at least 15%-20% to qualify for financing on a single-family home, based upon the size. Depending upon your credit, you may qualify for the lower 15% down amount (for a 1-unit property). Rental property loans for multifamily homes require a 25% down payment.
With an investment property, you can gain additional consistent income, especially from long-term tenants. Plus, the value of your property could rise enough to allow selling and making a profit.
With a rental property, you may enjoy some tax deductions on property taxes and mortgage interest, as well as on the expenses of repairs, insurance, marketing and advertising.
If you pay down your mortgage from the rental income accrued, you could, in turn, build equity in your property.
When looking at investment property, you’ll need a down payment of at least 15%-20% to qualify for financing on a single-family home, based upon the size. Depending upon your credit, you may qualify for the lower 15% down amount (for a 1-unit property). Rental property loans for multifamily homes require a 25% down payment.
