Can someone please explain how an investor loan works for a 4 unit and under?
I know it will be 20-25% down, but how does the loan qualification work? Is it based on my income like owner occupied is, or based on the property income like commercial is?
Hey @Nate Bibbo , they will take all that into account. The lender will see if the property can support itself or not. They will also look at your finances to see if you have enough income to pay the mortgage if anything were to happen with the rents. Since they are going to hold you personally liable for the property, they need to make sure you are financially trustworthy.
It depends on the type of lender you decide to work with. There is really no standard criteria across the board. Conventional banks will take a look at personal income and DTI while non qm lenders tend to base the loan on the asset itself along with your personal credit