This depends if you meet the eligible requirements to purchasing an investment property. The best Santa Rosa mortgage would allow you to put 20% down and use fair market rents to offset the purchase price. Additionally, most investors look at using a 30 year fixed rate mortgage to improve cash flows and provide the highest possible return on their initial capital while the same time allowing them to pay down the principal balance so that some point the property becomes free and clear. Depending on your income, the income potentially generated from the property, you might also want to consider a 15 year fixed-rate mortgage, but the returns are gonna be reduced as the principal will be increased because you’ll be on accelerated amortization schedule throughout the life of the loan.

Some things to note with regarding buying an income property:

• gift funds are not permitted on investment property purchases
• you’ll need at least 20% down
• 25% down with the 740 credit score or better will get you the best possible interest rate, put another way the lowest cost mortgage available
• fair market rents can be used to offset the purchase price
• your mortgage lender will use the 25% vacancy factor off the gross rents so it’s important the gross rents are as high as possible in order to purchase a maximum house price
• the appraisal is going to cost  at the minimum $650 because in addition to the cost of the appraisal, the appraiser will be required to produce and operating income statement as well as a fair market rent survey which the lender is going to require for financing purposes

If you’re thinking about purchasing an investment property, we can get you prequalified online upfront for free with no obligation.