Income property interest rate

[Duke Vang]

So I got out of class last night and my professor was telling me that, in order to do an income(investment) property, you will be charged with a higher interest rate compared to a property that you would finance for yourself. So here in Sacramento, CA it is 3.5% at the moment I believe. If I do an income property, how much would my interest rate be and i don't know how points work as well. On top of that, will I have to do a 20% down all the time when doing income property? Can someone help me a bit? I'm having doubts and trouble. 

[Gordon Cuffe]

yes the interest rate on income properties average about .5% higher than the current interest rates for owner occupied loans. You don't have to pay points to get a loan. If you do pay a point that is one percent of the loan amount. So one percent, (one point) is 2k on a 200k loan amount. You will need at least 20% down when buying a income property. If you have not purchased a primary residence , you can always buy a primary residence. Live in it for a year or two and then turn it into a rental. Then you can buy another primary residence with a smaller down payment.