What are investment property loans?

Loans for an investment property are mortgages used to purchase an income-generating property. That includes properties you plan to rent, or a house you want to fix up and sell for a profit (also known as “house flipping”). Strictly speaking, investment property loans are mortgages designed to finance these types of properties.

What are the different types of investment property loans?

There are three main loan types used to finance investment properties: Check your investment property loan options. Start here Most of those seeking investment property loans will require conventional mortgages. The majority of these are ‘conforming mortgages,’ meaning they conform to lending rules set by Fannie Mae and Freddie Mac.

Can you get a loan on an investment property?

Many banks, mortgage lenders, and other lenders are happy to lend on investment properties as long as you meet lending criteria, which are stricter than for your main home. In addition, investment property loans are easier to find when the economy’s doing well.