Tuesday, June 19th 2018


How to finance investment properties?

Interesting Question?   (6)   (5)

Answers (1)

11th Nov 2009 by Burt Carlson

If you are interested in financing residential property as an investment the process is identical to getting a loan for a primary home. However, the qualifying standards are somewhat stricter, a big down payment is required and the documentation required may be a burden. Also note that the type of property you are interested in will be important.

Typically your debt ratio will have to be about 45, credit score north of 700 and several months of reserves may be required. The down payment requirement will be at least 20% with better rates at 25% down. If you own rental property already you will have to provide federal tax returns fro the last two years in addition to other normal and customary income and asset information. If the property you want to buy is a condo it will need to be Fannie Mae warrantable and/or approved by FHA at a minimum. Down payments may be bigger for condo's as well.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com

21st Oct 2009 In Finance 1 Answers | 401 Views

Answer This Question / Give Your Opinion
How to finance investment properties?

Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *

Give Your Opinion
What is yacht insurance?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is yacht insurance?
Unanswered Questions in Finance
When should you get debt advice?
What is business financing?
What is private funding?
What is loan sharking?
What is a bad loan?

Answered Questions in Finance
What is a dip loan?
What is Real estate development financing?
What is a revolver loan?
How to understand finance?
How to finance the sale of my business?
Ask A Question
Get opinions on what you want to know:
Specific to any country?