What are the current rates for investment properties?

Question

Hi BP,

Where can I see the current rates for fha, owner occupied loans. Is there a website to follow these rates?

Thank you.

Chuck Masters · Answer

Hey @Edward P.,

I'm not an expert in financing by any means so my comments are strictly from my own experience.

If the house purchased is owner occupied by an investor and mortgaged by a FHA back loan the rate would be the same as if you were buying the house to live in it. The world investor is only a term you have in your head that no one needs to know. The rate which you finance the loan is based on your credit and a host of other things they look at debt/income ratios etc. There may be a stipulation on the loan that you have to live in the house for a year or more before you could become an 'investor' and move out and rent the house to a tenant. I believe you will hear the term on the podcasts for this known 'house hacking'.

So the rates you see published are available to the ones with the best credit and the finance institutions deem a safe risk.

Now if you buy the house as an investor or non owner occupied your rate will be higher than the published rates you see even if you have great credit because the banks look at non owner occupied purchases as a higher risk.

So use the rates you see published as a guide and then find a bank or mortgage broker to talk to about your individual situation to see what sort of rate you can qualify for.

We haven't even talked about down payment, this can affect things like PMI etc.

Chuck

Chuck Masters · Answer

Hi @Edward P.

Doesn't Bankrate give you all of this info? http://Bankrate.com

Chuck Masters

Chuck Masters · Answer

Yes, most of the time, and I say most cause there can always be exceptions to absolutes, that rates will be higher for non owner occupied mortgages.

Edward P. · Answer

Hey @Chuck Masters ,

I completely understand how rates have many factors but just like how bankrate.com has an refi or mortgage rates how is it that they do not have "investment" rates?

It is correct that investment rates are higher than owner occupied.

Thank you again!

Edward P. · Answer

Thank you I am new at this.

I do  not see investment properties is there something I am missing.

Thanks again.

What are the current rates for investment properties?

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