What the numbers say
Investors in Alabama borrowed at a median rate of 7.375%, versus 6.375% for owner-occupants — a 100 bps premium that ranks 4th of 51 states.
Their applications were denied 15.6% of the time. The leading reasons for denial were collateral, debt-to-income ratio, credit history.
70% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 17% were cash-out refinances. The typical loan-to-value was 75%, implying about 25% down.