11th Nov 2009 by Burt Carlson
If you are interested in financing residential property as an investment the process is identical to getting a loan for a primary home. However, the qualifying standards are somewhat stricter, a big down payment is required and the documentation required may be a burden. Also note that the type of property you are interested in will be important.
Typically your debt ratio will have to be about 45, credit score north of 700 and several months of reserves may be required. The down payment requirement will be at least 20% with better rates at 25% down. If you own rental property already you will have to provide federal tax returns fro the last two years in addition to other normal and customary income and asset information. If the property you want to buy is a condo it will need to be Fannie Mae warrantable and/or approved by FHA at a minimum. Down payments may be bigger for condo's as well.
Like This Answer?
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com