Investment Loan vs. Owner Occupied Loan - Approval Process?

[Lance Knapp]

Hi All,

I am considering taking a job that pays quite a bit less than my current job but would be a good long term move for my RE career. I am hoping to purchase my second triplex soon. I probably will not be able to approve for the deal size that I want using residential financing, therefore I am interested in using an investment loan. Can someone tell me the difference in approval process by purchasing a property using an investment loan vs a home loan (owner occupied)? My goal would be to buy a property with below market rents in a nice area, fix it up, then lease it up at market rents.

With an investment loan does the lender still look at your personal DTI? Or does the lender look at the CF of the property (would be weak since I'm buying a property with low rents)?

Thank you,

Lance