No landlord experience—investment loan?

5 Replies

@Bo Banner very likely. In my experience with most banks they don’t look for u to have land lord experience when purchasing an investment property in the 1-4 unit range. They’ll want 25% down payment. Good credit. Pretty much the same as buying a personal residence with a few extra stipulations but nothing to wacky.

My market is 20% down, and adequate reserves and income to cover the mortgage potentially.  In my experience, once you have landlording experience they will count some of the rents from the investment property towards your income, but not all.  Most banks I've seen will factor 60%-75% of the rental income as income, if that doesn't cover the mortgage they'll look at your income.

Hi Bo,

If you are buying a 2-4 unit, have 2 years of income, good credit, and the 25% down payment, you should be good to go! Landlord experience isn't taken into account for residential loans.