Investment Purchases historically are more risky than a primary residence loan.  The major GSE (Fannie Mae & Freddie Mac) are tighting up their guidlines on Investment Purchases and so are the servicing companiese that will service these loans.  

3 Months ago a borrower was able to purchase an investment purchase and not have to be able to pay points.  Now depending the the borrowers credit score and the loan amount the the bank is going to have major loan lever price adjustments to the interest rate.  Currently there is a 3% price adjustment for an investment property with a loan to value of 80% or greater.  If the borrower wants to put 25 - 30% down the price adjustment is only 1.75% 

What this means for the borrower is they will have to pay points in order to get a descent interest rate.  Tipically in the past Investment property was about .5 - .75% higher than a primary residence loan.  Now the borrower will have to get a much higher interest rate if they are not wanting to pay points.  Sometimes points make since but most of the time they are not worth spending the money.  

The seller can pay up to 2% of the Closing Costs

I recommend to all my investment borrowers to ask the seller to pay 2% of the their closing costs.  Thisi will allow the borrower to concerve their cash and at the same time get a lower interest rate with out having to pay the points or the loan level price adjustments.  

If you are concidering purchasing an investment purchase I would highly recomment asking the seller to cover 2% of your closing costs.  If the seller is unwilling to pay for 2% then raise your offer price by 2% and then ask again.  

If you are concidering purchasing an investment property in Redding California, Anderson Ca, or anywhere in Shasta county I would love to answer any investment questions you might have.  You can also visit my Investment Page.  This page will show how to calculate the return on an investment purchase.