Conventional Loans and Investment Properties in Columbus A conventional loan conforms to Fannie Mae and Freddie Mac guidelines and is used to purchase a primary residence. However, you can also use a conventional loan to buy an investment property. When you finance investment property with a conventional loan, you’ll need to provide the same documentation that you would if you were purchasing a primary residence. This includes bank statements, pay stubs, tax returns, and W2’s. Furthermore, you’ll be required to undergo a credit check. Unfortunately, the guidelines for purchasing an investment property aren’t as lenient as those for a primary residence. For example, qualifying for an investment property loan requires a higher credit score (640 to 680) than a loan on a primary residence (620). This is based on getting an adjustable-rate or a fixed-rate mortgage and the number of units that the property has on it. Another significant difference when purchasing an investment property is that the interest rate will be higher. This is because investment property loans carry a greater risk for lenders. Also, be prepared to put between 15% and 25% down. Additionally, you must have anywhere from 6 to 12 months of mortgage payment reserves. This will ensure that you can pay off the loan in the event of a lapse in your rental income. Liberty Capital Services LLC 438 E Wilson Bridge Rd #106, Columbus, OH 43085 https://maps.google.com/?cid=14294939209836226766