For premium pricing, a minimum of 20% down is required on all single family investments. Condos and 2-4 unit properties will require a minimum investment of 30%.

For borrowers with perfect credit, up to 95% of the value of single family units, and 90% on condos and 2-4 unit properties may be financed.

 An investor should expect to pay .5% to .75% (1/2 to 3/4%) higher in rate, and/or origination fees from 1-3% of the loan amount. This covers actual fees to the broker to place an investor loan.

Although the investment may appear to "support itself", for financing purposes only 75% of the rental income may be used for qualifying. Some lenders may also require a Net Operating Income Statement ($75-$100) provided by the appraiser for rental income information.

Credit is a large factor in underwriting investment loans. Good credit is very important.

Residential properties over 4 units are considered commercial investments. Commercial guidelines differ a great deal from residential lending. The cost also increases considerably, however multi-unit properties offer some of the best returns in real estate investing.