Second Homes and Investment | New Changes And Limitations
DDA Mortgage • May 24, 2021
Changes on second homes and investment properties, Mortgage Broker Largo.
It seems the Government is targeting 7% of their loan products to come from second homes and investment properties. They are setting limits on several things to decrease loan demand.
Investment properties (Government) conventional loan products have shifted from a 20% down payment to 25% down payment. Second homes have shifted from 10% down to 15% down. Fortunately, there are alternative products available, and depending on a few factors and loan type, you may be able to qualify for a different type of loan. Just note, when you have less money to put down, you tend to pay a higher interest rate. This is not always the case. However, it is a good general rule when buying a second home or investment property.
You may also see higher interest rates for properties depending on how you finance your second home or investment properties. At DDA mortgage, we want to make you aware that in general, you need 15% down for a second home and 25% down for an investment property.
For more information about investment property loan options go to our property investors page.
For more information about financing a second home, give us a call (727) 784-5555. Or start your residential pre-approval application.
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