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Average Commercial Real Estate Loan Rates for Investment Properties Interest rates on investment property loans can be as low as 3%. However, the loan-to-value ratios on these loans will be lower than owner-occupied commercial real estate loans , meaning that you’ll be required to put more money down.
Do you own a rental or investment property? Now may be a great time to refinance, lower your payments, and increase cash flow.
Let’s say that the mortgage on the rental property has an interest rate of 6%. You have also been averaging an annual rate of return of 4% on your investment portfolio over the past several years.
Different loan requirements. Typically, loans used for a second home or rental property require a minimum 20% down payment since mortgage insurance is not available for investment properties. You’ll also need to have 2 years of property management experience if you want to use your property’s rental income to qualify for a loan.