Posted on: 12th Apr, 2010 04:32 am
Hello,
I'm in the process of purchasing an investment property. It is a basic, 1 bedroom, garden style condo. I was told that there is a 3 point charge for an investment property right now and another .75 point because it is a condo. Is this correct? I'm a very qualified buyer.
Thanks
I'm in the process of purchasing an investment property. It is a basic, 1 bedroom, garden style condo. I was told that there is a 3 point charge for an investment property right now and another .75 point because it is a condo. Is this correct? I'm a very qualified buyer.
Thanks
i haven't seen rates in a week or two, but that doesn't sound out of whack to me. investor loans are not exactly cherished by the markets.
Fannie Mae has added .75 points for condominiums to their pricing--that meaning .75 points more than the rate and pricing for a single family house.
With 20% down payment, the Fannie Mae pricing adds 3.00 points for an investment property, no matter if a condo or a single family house (3 and 4 family investor properties require a 25% down payment)
With a condo or single family investor property, if you make a 30% down payment, the add on to the owner occupied pricing is 1.75 points.
So, yes, that is normal for an investor condo purchase with a down payment less than 30%.
With 20% down payment, the Fannie Mae pricing adds 3.00 points for an investment property, no matter if a condo or a single family house (3 and 4 family investor properties require a 25% down payment)
With a condo or single family investor property, if you make a 30% down payment, the add on to the owner occupied pricing is 1.75 points.
So, yes, that is normal for an investor condo purchase with a down payment less than 30%.
