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do you get a lower intrest rate on income property?2 -3 family ?

  • July 13 2009 - Attleboro
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Answers (4)

Profile picture for owner of this house
Well that just doesnt seem to make sense to me about having more units be riskier.  If you have more units, its actually less risky because even if you lose one tenant, you have other tenants who are still paying the rent.  Its diversified!
  • July 17 2009
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the more units, the higher the rate these days.  Fannie Mae has new adjustors for 2, 3 and 4 unit properties both owner occupied and investment.  Higher risk with more units.  FHA multi-unit refinance and purchase adjustments aren't as severe.  You do need to meet reserve requirements for PITI on multi units, typically at least 6 months in reserves.
  • July 13 2009
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Yes you will pay more and have higher fees if it's an investment property. You can avoid this by living in one of the units. But reality is investment property holds a higher risk for the lender/investor and thus you will pay more. Good Luck!
  • July 13 2009
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No.  Generally the rate wil be about .5 to .75 higher for investment properrty.  It will also be an additional .25 to .375 for 2-4 units.

The loan is riskier by nature since you are not living in it and would be more likely to pay your rent/existing home mortgage before you pay your investment property loan.  Extra units mean extra chance for vacancy, so also riskier. 
  • July 13 2009
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