Updated about 3 years ago on . Most recent reply
Looking for rates on Buy and hold properties
Buy and hold properties what is a good rate with you putting down 20 percent ?
Most Popular Reply
Conventional loans will have your best interest rates and overall terms. If you have a good credit score and have enough income, this is your best bet. Quoting rates online for lenders requires a bunch of disclaimers, but I recently locked a 25% downpayment rental property, 30 yr fixed at 5.99% with under 1% in discount points. You can put 15% or 20% down as well, but the rate and fees are higher.
Non QM - are loans that do not mean the conventional (and Qualified Mortgage) standards. Maybe there is not enough income, or other challenges, and those rates are higher. There are bank statement loans (for income, instead of traditional pay stubs), or DSCR loans that only care about if the property will cash flow or not. Rates is 7%-9% range with higher fees and maybe pre payment penalties.
What states are you looking to invest in?