Down payment and APR for investors?

[Hersh M.]

If the normal 30 year APR is around 4.2% for a normal owner occupied home mortgage, is the APR for investors always higher? How much approximately?

And is it true that down payment for investors is also higher atleast in some states? Do you usually go for 20% or more or less? 

Thanks. 

[Doug McLeod]

For conforming Fannie/Freddie backed mortgages, investors generally will pay about 1% more than they would for their residence.  So 5.2% in your example.

Again, for conforming Fannie/Freddie mortgages on Singe Family 1 unit properties, you can typically get 80% LTV (so 20% down) to purchase on your first 3 rental properties (assuming you already own a primary residence - otherwise this applies to first 4). Fannie Mae actually allows 85% LTV up to your 4th mortgage on investment property (purchase loans), but I haven't seen any conventional lenders that go above 80%. After that it's generally 75% (so 25% down).

Most commercial loans also require 20-25% down on investment property.

Private lenders, owner financing, etc. can be all over the place, but are generally close to the 75/25. 

Here are Fannie Mae guidelines that apply on first 4 properties:

https://www.fanniemae.com/content/eligibility_info...

Here is the Fannie Mae guide for properties 5-10:

https://www.fanniemae.com/content/guide/selling/b2...