CHAPTER 4

Loan Types for Investment Property

Just as there is a myriad of loan programs for a primary residence, so too there is an endless supply of loan choices available to the real estate investor. Investment property real estate loan types can include the following:

Six-month CD ARM

One-year Treasury ARM

3/1 hybrid

5/1 hybrid

7/1 hybrid

Interest only

30-year fixed

15-year fixed

And that’s just for starters. Each individual loan program can also have several interest rates from which to choose, depending upon how low you want your rate to be and how many discount points you want to pay—or not pay.

Investment property loans also have additional down payment requirements as well as certain stipulations concerning the number of properties owned, ...

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