Mar 05 2009
Mortgages for Investment Properties
For many years qualifying for financing on investment properties has been a little more stringent than the qualifications needed for purchasing a home as a primary residence. This is because investment properties typically have a higher foreclosure rate than principle residences and therefore present a higher risk to lending institutions. As a result, investors need to be higher qualified and tend to pay higher rates and fees.
Many lenders, including the institution that I currently work for, have decided to avoid originating mortgages for investment properties altogether. I guess they figure the easiest way to avoid the risk associated with investment properties is to avoid investment properties.
Mortgage Giant Freddie Mac is still issuing mortgages for investment properties. You should contact your lender or broker for more details.
