I know when calculating DTI for a 5/1 ARM loan on a primary residence, they add 2% to the rate. When trying to get a subsequent loan for a rental property, would they just use the actual PITI from the primary home loan, or would it still be the PITI assuming 2% higher rate?

Also, are ARM offerings & qualification standards pretty much the same for rental properties as primary home loans?

Not looking for a discussion on the pros & cons of whether to use fixed or ARMs, just hoping to learn how lenders actually treat them.

Thanks in advance for any input.