Tuesday, May 31, 2016

SFR Investor Loan Qualifications May Be Changing

Seems pretty common sense. If the property doesn't make enough money to pay the mortgage debt the investor is more likely to default.

Well, duh!!!

For a long time an investor buying a condo/townhouse, or single family residence, had to put at least 25% down. That was what likely made for a more comfortable lender to create the less likelihood of a future default. More money taking the chance of a total loss, more likely to stick it out when times get tough.

Now, the lenders are finally considering how much the actual rental makes. Can it cover the mortgage debt?

Personal income, including the rental income, and debt was the key on the lending (or refinancing) on an income property.

It's about time they are considering it in the more commercial lending way.

So, if you are considering an investment property, be sure to talk with a lender that is considering this option. And, be sure of course, that the property income will handle the debt.

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