Investment Property Loans

What is an Investment Property Loan?

An investment property is a property that is owned but not occupied by the borrower and is not your primary residence. If you’re purchasing another property to bring in more income by renting the property or to take advantage of tax benefits, you’ll need an investment property loan.

How is an investment property loan different from a primary home loan?

Investment property loans commonly have higher interest rates and will require a higher down payment.

Most mortgage insurance won’t cover investment properties with more than 1 unit and the interest rate will be lower if you can pay more as the down payment. Mortgage insurance companies will only insure a 1 unit investment property purchase with a maximum Loan to Value of 85%.

You’ll need a higher credit score. Scores that fall below 740 will lead to higher interest rates or you having to pay an additional fee. Credit scores as low as 620 are allowed on investment property purchases but the higher your credit score the lower your interest rate will be.

Contact your nearest On Q Financial Mortgage Consultant to learn more about your investment property loan!

Information is subject to change without notice. Some program restrictions and requirements apply. On Q Financial, Inc. is an Equal Housing Lender, NMLS#5645. OnQ0501180681Y000004AjWc

See if an investment property loan is right for you