A down payment is a standard requirement for most mortgage loans. How much you should put down on a house depends on the type of loan you're applying for, the lender's requirements, and your financial situation. When it comes to investment properties, the rules can be a bit different compared to buying a primary residence.
Making a lower down payment lets you put more of your savings toward closing costs and lender fees. However, it can also mean higher monthly payments and possibly having to pay private mortgage insurance (PMI) if your down payment is less than 20%. It's essential to weigh the pros and cons before deciding on the amount of your down payment.
After tapping the home equity in your rental unit, you can use the funds to make improvements, scale up your portfolio, or pay off high-interest debts. This can be a strategic move for investors looking to maximize their returns and grow their real estate holdings.
Understand mortgage rates for investment properties — where they stand today, plus our forecast — to make informed decisions. Interest rates play a significant role in the overall cost of financing an investment property, so staying informed about market trends is crucial for investors.
After a year of being beseeched with bad news, real estate investors got a ray of sunshine from Fannie Mae. The government-backed lender announced new programs and incentives aimed at helping investors secure financing for investment properties, potentially making it easier for buyers to enter the market.
Unlock funds with a HELOC on an investment property. Learn the pros and cons of doing this and the best ways to leverage property equity. A Home Equity Line of Credit (HELOC) can be a valuable tool for investors looking to access funds for renovations, additional investments, or debt consolidation.
Home buyers are posting smaller down payments in most housing markets since home prices peaked in Q4 2022 and are falling through 2023. The shifting market conditions have influenced buyer behavior, with many opting for lower down payments to preserve cash and take advantage of lower property prices.
Buying a second home offers both a getaway and potential income, but the rules for a second home mortgage differ from your primary residence. Lenders may have stricter requirements for down payments and interest rates on second homes, so it's essential to understand the nuances of financing a second property.
