30 year loan on a investment home?

[Ashish Mehta]

Hi,

I was told before if I purchase a home for a investment i can't apply for a mortgage loan. What's the boards thoughts on where to get a 30 year loan @4% for a investment home? 

[Patrick Britton]

As a lender I feel i should add my very worth 2 cents :) 
@Joe Villeneuve is on target.  most banks dont bother with "low" amounts because there isnt enough money for them.  so try a mortgage broker or banker, especially one who wants business.

@Ashish Mehta LOL...who told you "if I purchase a home for a investment i can't apply for a mortgage loan?" because it's 100% totally and completely FALSE. I do investments loans all day long. HOWEVER, you will be required to put down 25% at a minimum. Furthermore, your rate is unique to you. just because so and so got 4.25% doesnt mean you're going to get it. your rate is affected by various items, such as your credit score, the down payment, the size of the loan, the property, loan purpose, etc. These days, you simply will not get a 4% investment loan unless it's an ARM, and everything is perfect.

I must add though, so many people get caught up in getting the lowest rates...which is wrong, wrong, wrong.   Having the lowest rate doesnt mean getting the lowest payment every time.  

check with an intelligent mortgage broker or banker and have them do a rate/payment/closing cost matrix.  most banks dont bother doing this because it's too time consuming, and they just want to give you a loan and move on.  

so, be careful when taxi drivers, hairdressers, dentists or other non-pros tell you something.  good for you to double check with this board.  there's a lot of bad info out there coming from ill-informed people that can hurt you.  

good luck