Our Blog -- Investments, Mortgages and Advice

Lately, we've received quite a few phone calls from people interested in taking advantage of the decline in housing prices and investing in real estate.  Great idea just go in with your eyes open.

A few words about loans for investment properties:

(1) Generally you are expected to put between 20-30% down. Rates are more favorable if you put at least 25% down.

(2) Interest rates are generally higher for investments than if you were occupying the property.

(3) Sometimes, the lender will require an impound account on investment properties.

(4) Borrower must have and be able to document a minimum of six months of mortgage payments, insurance and taxes for the investment property in reserves plus an additional two months reserves for each additional financed second home and investment property.

(5) If you are thinking of buying a condo for an investment, lenders are very particular about what they are willing to underwrite.