Finance for your investment property is the vehicle that will help you reach your goals.  But with so many options on the market, rising foreclosure rates across the country, and the on-going “Credit Crunch”, you need to be educated.  Looking for a mortgage that fits your situation, and your property?  Below, we explain common mortgage programs offered on the market so you can be better prepared when it’s your time to buy.

30-Year Fixed Rate What It Does:  Amortize the principle and interest in 360 equal payments. What It’s Good For:  Long-term holding of a property. Requirements:  Wide range of down payments and fully documented income.   Interest Only What It Does:  Pays all the monthly interest on the mortgage. What It’s Good For:  A temporary solution for highly appreciating properties. Type of Property It’s Good For:  New construction properties. Requirements:  Above 680 FICO with 20% down.   Neg-Am AKA:  Option-ARM, Pick-A-Payment What It Does:  Offers a choice of payments, from partial interest, to full interest, to interest plus principle. What It’s Good For:  Highly appreciating, high cash-flow properties. Type of Property It’s Good For:  New construction multi-units. Requirements:  Above 700 FICO with 10% down.   HELOC AKA:  Home Equity Line of Credit What It Does:  Allows you to borrow against the equity in your property. What It’s Good For:  Down payment funds for a new investment property. Requirements:  Between 20-30% equity; varies by state.

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