Whether you need money to purchase a second home or an investment property, it is crucial to find the right type of loan. Our licensed loan originators can look at your requirements and existing financial situation to offer suitable alternatives. Qualifying requirements, interest rates, and down payments vary based on the type of property and loan you select.
Fill out the form below and a mortgage professional will get back to you shortly.
Lenders look at multiple factors to determine if the home you wish to purchase may qualify as a second home or an investment property. This, in turn, has a bearing on different aspects of your mortgage.
For a home to qualify as a second home, it needs to be at least a reasonable distance from your primary residence. It needs to be a single-unit home or condo that belongs only to you. You cannot rent it out or leave it run by a management company.
An investment property can be near your primary residence, and it can be a single family or part of a two-, three-, or four-unit structure. You may rent it out or have it run by a management company. These mortgages tend to require larger down payments and have higher interest rates.
Getting private mortgage insurance (PMI) for investment loans is not an option, so expect to pay at least 20% of a home’s selling price as a down payment. If you have two or more years of experience in managing properties, you may use the rental income you plan to generate through the property to qualify for a loan.
learn more
Using the equity you have built in your existing home to buy a new home is possible. However, your existing home’s equity essentially works in securing the new loan, and you need to keep making payments toward both mortgages.
Getting a loan for a second home or an investment property is not the same as getting a conventional loan,
which is why it’s in your best interest to get as much information as possible.
To Meet Our Clients’ Diverse Needs
If you plan to buy a home but don’t know how to go about the process, consider going through our in-depth guide for first-time homebuyers.
