Are you purchasing the home to be a rental property that will provide a steady stream of income and offer some tax write-offs or are you looking to purchase the home to renovate and flip to make a profit in a short period of time?

A standard conventional loan will typically offer the best rate and term but require a minimum of 15% down and offer no money towards renovations. There are other loans available that can help you purchase with less down and provide funds for repairs but these usually come with shorter repayment terms and higher interest rates. If you are looking to refinance the home in a few years or flip it for profit, these considerations may not be as important in your decision.

Most investment loans require a minimum FICO credit score of 620 and will require seasoning on any derogatory credit event such as short sales or foreclosures. Of course, the higher your score, the better the interest rate you will be able to receive.