Current Investment Property Mortgage Rates Today

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If you’re planning to buy an income-generating property, shopping around to find the best mortgage rates can help you make the most of your investment.

Check out today’s investment property mortgage rates and learn how these types of rates are determined.

Current investment property mortgage rates

In general, mortgage rates have been inching up this month, following several weeks of rapid decreases. But rates are expected to fall throughout 2023, and borrowers will likely be able to snag lower rates later this year.

As you explore rates, keep in mind that investment property mortgage rates are usually higher than mortgage rates on primary residences or second homes.

See how investment property mortgage rates compare

Check out today’s mortgage rates to see how rates are trending. These rates are for all mortgages, not just investment property mortgages.

Mortgage type Average rate today















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Investment property definition

When using a mortgage to buy a property, buyers can choose from three types of occupancy: primary residence, second home, and investment property.

Your primary residence is your home, and the place where you live for the majority of the year. A second home is a home you occupy only some of the time, such as a vacation home.

Investment properties are properties purchased solely for the purpose of generating income, often by renting it out on a short- or long-term basis. Investment properties are not owner-occupied, meaning the owner doesn’t live in the home.

Are investment property mortgage rates higher?

The main reason investment property mortgage rates can be higher than other types of mortgages is that lenders consider investment property mortgages to be at a higher risk of default than other occupancy types.

Why are investment property mortgages riskier? If the borrower encounters a financial hardship, they’re more likely to make sure the costs on their primary residence are paid first. Investment properties also require a lot of work and money to maintain. If the owner has a hard time finding tenants or ends up putting more money into their investment than they’re getting out of it, they could decide to walk away.

Other factors that can impact your rate include how much you’re borrowing and where the property is located. If you’re buying a very high-cost property, you may pay more in interest. Some states also have higher average rates than others.

To help keep your rate as low as possible, you could work on boosting your credit score, improving your debt-to-income ratio (DTI), and saving for a larger down payment. You should also get preapproved with more than one lender so you can compare offers.

How to qualify for an investment property mortgage

Because the risks are higher, the requirements for an investment property mortgage are stricter. 

You’ll need to put down at least 15{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to purchase a single-unit investment property. If you’re buying a property with multiple units, you’ll need at least 25{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. If you can put down more than the minimum, you’ll likely get a better rate.

“A homebuyer looking to purchase an investment property should account for a 20{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 25{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} down payment to get a competitive rate,” says Raul Hernandez, a mortgage broker with Competitive Home Lending.

Additionally, Hernandez says its possible to qualify for an investment property mortgage with a credit score as low as 620. But those with lower scores will need to make a larger down payment and pay more in interest, he says.

Mortgage calculator

Use Insider’s free mortgage calculator to see how different rates can impact your monthly payment and overall loan costs.

Mortgage Calculator

Your estimated monthly payment

  • Paying a 25{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

Investment property mortgage frequently asked questions

The amount you’ll need to purchase an investment property can vary depending on your lender — but typically you’ll need a minimum of 15{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} down for a single unit, and 25{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} down for a two to four-unit property.

However, if you’re considering purchasing a multi-unit property to rent out, you can make a lower down payment if you occupy one of the units full time. This is allowed because the property would be considered a primary residence rather than an investment property. With an FHA loan, you can purchase an owner-occupied property with up to four units with a 3.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} down payment. With a VA loan, you won’t be required to put anything down. For conventional loans, you’ll need at least 15{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} down for a two-unit property.

You’ll need a higher credit score and down payment to qualify for an investment property mortgage than you would with a primary residence mortgage. Keeping your DTI to an acceptable level may also be more difficult, since you’ll be adding a new mortgage to any existing loans you’re already paying.

If you’re having trouble coming up with a sufficient down payment for your investment property purchase, you might consider tapping into the money you have in your current home with a home equity loan or HELOC.