Unlike most residential homes, an investment property is one that is not the owner’s primary residence, and instead is used to generate profits. If it is primarily used for revenue, a property becomes considered an investment property.
Several types of properties fall into this category: residential rental properties, commercial properties, and properties purchased with the intention to renovate it and later flip it to make a profit.
Yes. In comparison to homes purchased as the primary residence, taking out a loan for an investment properties often comes with higher interest rates and a larger down payment. It can be difficult to receive a loan on an investment property, particularly in Southern California, so the borrower must be prepared to put down at least 20% of the home price as a down payment and be able to prove good credit scores.
Be able to make a sizable down payment. The more you can initially pay for a down payment, the better your interest rates will be over the course of the loan. In addition, the higher your credit score, the better interest rates you’ll receive long-term.
It is generally more difficult to qualify for a loan on investment property than it is for a primary residence in Southern California. Make sure you do your research and choose a property wisely before going through the process of applying for a loan.
It is also recommended to avoid investing in any property if you have any lingering debt — be it from remaining college loans or medical bills — or you can anticipate a large expense coming quickly. Lenders want to know that you have the funds to pay off the loan, and that you will continue to do so for the years on the loan.
Contact The Forester Team today for any interest in becoming involved with investment property or investment property loans!
Thank you so much for all that you have done for us throughout this process. I honestly do not know if we would have our dream home if it weren’t for your amazing work ethic and ability to get the ball rolling so quickly. Two offers were put on our home while awaiting the loan approval! No one else could have made that happen as quickly and efficiently as you did! We are eternally grateful to you and your amazing team at Team Forester Home Point Financial. Thank you. Thank you. Thank you.Amy Stock
I would like to appreciate you and your team’s work for getting this refinancing processed and finished in time with such an efficiency. You made it go through with such an ease. I would most definitely recommend you and your team in the future.Thank you again for your support and help!Helena Chun
Thank you for assisting me and my family with the purchase of our home. The entire process was beyond expectations. All of you have made my first time home buying experience enjoyable and memorable.I’m very pleased and will definitely recommend and work with all of you again.Semper Fidelis
Thank you all for your assistance and guidance through our first purchase. It went very well (much smoother than anticipated) and we thank you for all the hard work you all have put in to getting us into this home. We look forward to working with you again in the future.Eric & Nicole Roachell
Casey Forrester is the best in all regards, I can’t say enough good things about him. We just closed a VA loan in 21 days yesterday. He is able to fully underwrite the file before he even gives a pre-approval letter which allows you to offer without a loan contingency! Also, you can close in 21 days which cuts the escrow period by 30% and increase profitability and cash flow for you as the agent. He also has an online pre-approval link in his signature that makes getting pre‐approved super easy!Drew Schulte
Thank you, Casey, for a job well done. I was so glad that I called you to refinance our home. The moment that I talked to you on the phone that first day about the refi, it felt like a huge weight was lifted off my shoulders.You put my mind at ease, I was calm and confident that I had made the right choice.Derek Paddock
I have truly appreciated working with you and your team and will continue to recommend you to our friends!Brian & Nina Kasper
You and your team didn’t have the easiest case, but you handled it so well. Your communication was great, and everyone we dealt with was very friendly. I wish we had worked with you on the first go-around, but either way, we are looking forward to working together again in the future.Andrew & ArielKinsler