Investment Property Loans

Discover home financing options for investment property in California, Oregon and Washington.

If you’re interested in purchasing investment property in California, Oregon or Washington, Empower Capital Group can help you find competitive rates on a variety of programs. We’re proud to offer a wide selection of mortgage products, including several that can be used to finance a home that is either not used as the borrower’s primary residence, or is a multi-unit property that the borrower uses for both their primary residence and rental income.

Whether you’re purchasing a rental house in San Francisco, or a duplex in Portland, or a 4-unit apartment building in Spokane, we can likely help you find the right financing for your investment property needs. Take a look at some of our Investment Property Loan options below and contact us for details and a free rate quote.

Contact us today for a free Investment Property Loan rate quote.

(707) 522-1887

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Investment Property Loan Options & Important Facts

Conventional home loans can be used to finance the purchase (or refinance) of a home that is used as rental property. The difference between using conventional mortgages for primary residences vs investment property mainly lies in the loan-to-value (LTV) ratio. When you’re purchasing a home for your primary residence, you may be able to put less than 20% down, giving you an LTV of 80%. When you’re financing an investment property that will not be used as your primary residence, many lenders will require a minimum of 20% down. This is because investment properties are considered a little more risky than owner-occupied homes. Other financial qualifications such as income and credit score may also vary slightly between owner-occupied property and investment property financing.
FHA Loans are typically used only for owner-occupied housing. However, the FHA does allow borrowers to use FHA financing for multi-unit properties, as long as the loan borrower uses at least one of the units as their primary residence. For example, if you purchase a duplex and intend to live in one unit and rent out the other, you may qualify for an FHA loan. Learn more about California FHA Loans, Oregon FHA Loans or Washington FHA Loans.
Interest rates may be slightly higher for investment property loans. Again, this has to do with investment properties being considered higher risk investments than owner-occupied homes. There are a few things you can do to help secure a lower rate with an investment property loan, including paying points, maintaining excellent credit and paying more than 20% down. Talk to one of our loan professionals for more information.
Other fees for investment property loans (such as origination fees and appraisal fees) may also be more expensive than those associated with loans for primary residences. However, this isn’t necessarily true for every borrower. The best way to ensure you get a good rate and low fees is to be as strong a buyer as possible. That means making sure your credit is in top notch condition, you’re financially prepared to make at least a 20% down payment, and you have enough money in reserves to cover several months’ worth of expenses in the event that your property does not generate income right away.

Ready to take the next step toward financing your investment property? Contact us today for a free rate quote and additional information. Call (707) 522-1887. Or, you can connect with us by submitting your information through the form on this page.