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What is the current interest rate for investment properties?

I have a rental home in Florida I can't afford to move into,so I rent it to cover the mortgage. I have a house where I live in Michigan with a mortgage that I want to rent (and cover that mortgage).I want to buy a duplex in Florida to live in and rent out the other half to cover that mortgage. I've been told I will have to buy the dulplex as an investment property at a much higher interest rate. Does this sound true?  What is the going investment interest rate?
  • February 04 2009 - Cape Coral
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Answers (3)

If you can prove that you are residing in the purchase to be DUPLEX in FL, then the rate is the same...  There might be a price hit (slightly for Duplex, depending on down payment... This is strictly about OCCUPANCY...  As far as the MUCH HIGHER RATE??? THAT is INCORRECTS AS WELL.. IT IS THE SAME RATE, but if the property is INVESTOR,  1.75 points added to the pricing for LTVs at 75% or less.... 3 points added to 75.01% - 80%... NOTHING ABOVE 80% ANYWAY...  You have been told wrong around the watercooler and again once on this board...   OCCUPANCY  OCCUPANCY is the entire issue.  HOWEVER, you have 2 homes already.....  proving occupancy intent to an Underwriter these days... easier said than done.. MI&FL are classified as FEDERAL REAL ESTATE Disaster areas and occupancy is a major issue.  Good luck, but that is the facts.
  • February 05 2009
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I think whoever told you this knew what he/she was talking about.  The reason is if you already own a home in Florida, you have to get preapproved for a new mortgage taking the current home into consideration.  If you show the rental income on your tax return you may be able to buy a duplex as primary residence.  Otherwise unless you have 25-30% equity in your rental home yes, you would have to purchase the duplex as an investment property.  As the other person said I don't think the rates are that much higher but the down payment is.  Hope this helps.
  • February 05 2009
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Firstnet, that's wrong. Who told you this? A mortgage professional or a jack of all trades? With most lenders 1-2 Unit has the same rate&fee if it's a conforming loan amount. Interest rate depends on many factors. .... Good luck.
  • February 04 2009
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