Investment property loans typically have higher interest rates, larger down payments, and different approval requirements. Also, you may have other expenses to consider before you buy investment property, such as homeowners association dues, cleaning services, flood insurance, and utilities.
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Financing for investment property is available. If you’re looking to invest in real estate, use these tips to find an investment property loan.
Qualifying for a Loan. Typically, the lenders that entertain applications on a home equity line of credit on investment properties will set stiffer underwriting requirements than they would on owner-occupied properties. In other words, the lending criteria they use when assessing an application is stringent.
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