Buying Investment Property

Washington Mutual has a number of ways for you to buy investment property or vacation property. Keep in mind when you buy investment property or when you buy vacation property that the interest rate you pay for your mortgage will be higher than the interest rate you would pay if the property you are buying were going to be your primary residence.

Investment property is most commonly apartment units, though office units, warehouses and other properties also qualify as investment property. Four or fewer apartment units are treated as one classification of investment lending and properties with more than four units are considered differently, with different qualifications. Please consult with a Washington Mutual lending officer for financing on investment properties with more than four units.

One way to get the down payment for your investment property or for your vacation property may be through refinancing your primary residence or taking out an equity loan or equity line of credit.

When you refinance your primary residence you take out a new first loan which pays off and replaces your current first loan. Assuming that your home has appreciated in value since you took out your original first loan, the difference between the amount of your new first loan and your old first loan represents cash in your pocket which you can use toward the down payment on your investment or vacation property.

An equity loan is a second mortgage taken out on your primary residence that is secured by the equity. Note: Equity in this context is defined as the difference between what your property is worth on today’s market and what you still owe on your property..

Depending on the number of investment units you are purchasing you can investment or vacation property using a wide range of different adjustable rate mortgages (15-year or 30-year ARMs) or using 15-year or 30-year fix-rate loans.