Getting a mortgage for a rental property isn’t much different from getting a mortgage for a primary residence. In most cases, you’ll use a Fannie Mae or Freddie Mac loan for an investment property, and it will be either a fixed-rate loan or an adjustable-rate mortgage.

Conventional mortgages allow you to buy a primary residence with as little as 3% down. The government-controlled mortgage financing giant Fannie Mae allows rental property investors to purchase a single-family home with 15% down, but you may only be able to take advantage of that if you’re working with a direct lender.

Can you take a mortgage for a rental property?

Well, the ability to take a mortgage for rental income and to take a mortgage for home lets you buy both an investment property and a home at the same time. The rental income from your investment property will cover the mortgage payments on this real estate investment.

Can you deduct mortgage interest on a rental property?

If you live in the home, for example, you generally can deduct mortgage interest.   If you use the property for rental income, you can deduct mortgage interest and a number of other expenses …

What happens if I rent out my house?

If you rent your home with a second-home mortgage on it, that mortgage can be called due and payable all in one lump sum. Non-owner occupied mortgages: These loans are for people who want to rent out the home. If at any time you want to convert this rental home to a primary residence, you’re free to do so,…

Do you need a mortgage to buy an investment property?

When you buy an investment property, you need an investment property mortgage. The first thing to know is what other names these mortgages go by, so you know them when you hear them. A lot of consumers and real estate agents will call this kind of loan a rental property mortgage.