Money spent Mortgage Publication | 2025 Guidance and Processes
What exactly is an investment property?
An investment property is a home that’s not your primary home, and that you purchase for the intention to generate rental income otherwise bring in profit.
Mostly, these are generally one- in order to five-tool rental land otherwise house you buy to fix and you will flip. For the reason for this information, we’re not and additionally commercial financing qualities eg apartments otherwise place of work structures.
It is important to distinguish anywhere between funding characteristics and you may next house because mortgage guidelines and you will interest rates differ per particular assets. The most significant difference in both is you must take the second home for at least an element of the 12 months, even though you – the proprietor – never live-in an investment property.
A second family or vacation home might matter while the a type regarding investment property if you intend so you can lease it out also to have short periods of time.