Do you offer loans for investment properties?

Yes, Better Mortgage offers loans for investment properties, enabling you to finance real estate intended for generating income, such as rental homes or properties to renovate and sell.

How can investment property loans different from primary residence mortgages?

Interest Rates

Investment property mortgage rates are typically higher than those for primary residences. This is due to the increased risk lenders associate with non-owner-occupied properties.

Down Payment Requirements

Lenders often require larger down payments for investment properties. While primary residences may allow for down payments as low as 3%, investment properties usually necessitate a minimum of 15% to 25%, depending on the loan type and your credit profile.

Credit Score

A strong credit profile is generally required for investment property loans. Lenders typically look for a higher credit score compared to primary residence mortgages to account for the added risk associated with investment properties.

Cash Reserves

Lenders may require you to have sufficient cash reserves to cover several months of mortgage payments, taxes, insurance, and homeowners association fees. This requirement helps ensure you can manage the mortgage payments even if the property isn't generating income immediately.

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