Conventional Loans info - CT

[William S.]

Hey guys,

As of the moment I am not looking for another property. However, I did want to know for when the time comes, a bit more about conventional loans in CT. For an investment property, what is the lowest that one could put down for an conventional loan, 10%, 5% etc.? What does that number factor in as well? For instance, if you want to put down 10%, will you typically find that another 5% is thrown on by most lenders because it is an investment property?

[Jeff Shumway]

Exactly- the occupancy of the property and number of units determines how much down payment is required. Primary residence loans require less down payment because they are considered less risky. In hard times, borrowers are much more likely to default on an investment property loan than a primary residence. Because of this, interest rates on an investment property loan are higher than a primary residence or second home. It's all dependent on the level of risk associated.