There is no easy answer as to what credit score you need for a residential or commercial investment property loan as credit requirements can differ greatly among lenders and are based on numerous factors. Let us look at credit requirements for a conventional mortgage for an investment property.
You will need a credit score of at least 720 to obtain a conventional investment property loan from a private lender. However, this requirement is flexible depending on other factors, such as your debt-to-income ratio and credit history. Interest rates will run 1-3% higher than those of traditional home loans. You can expect to be required to make a down payment of at least 20% on a conventional mortgage for investment property. The loan-to-value ratio will need to be 80% or less and you may need as many as six months liquid cash reserves.
Call your mortgage professionals at RLG today and we will be happy to discuss in more detail how to set you up with an investment property loan that will fit your growth needs.