Direct Private Capital Group, Inc.

Investment property loans are home loans specifically designed for people who want to buy real estate but don’t intend to live in it.

Investment property loans generally purchase rental properties or other income-producing assets, such as commercial retail space or apartment buildings.

They tend to have higher interest rates than conventional home loans because Fannie Mae or Freddie Mac doesn’t back them. This means that the borrower has more risk and can’t get as low of an interest rate as someone with more stable employment history and credit profile.