Investment rental property?

What does it take to qualify to buy investment property? At a discounted rate (because of the times). What kind of credit/assets/day job income/present mortgage does the bank look for? Will my main home be in trouble?

around 10% down...and the mortgage payment on your rental can't exceed 40% of your gross monthly income.

they may use 75% of the rental income if you have had 2yrs of landlord experience. some lenders will allow you to use the 75% w/out the experience.

If you want to invest in real estate....hard money lenders.

The interest is high, however, if you are flipping or renting out then take a mortgage out and pay back the loan and make a profit.

Its safe because if you cant pay back the loan, they take the property you just bought, not YOUR financials

Investor loans are priced a bit differently than owner occupied properties as loans on non-owner occupied properties represent a higer risk of default and lenders price according to risk perception. Lenders charge a premium add- on to costs.The buyer will have a choice of accepting a higher interest rate or paying the required discount point (s) as a part of their closing costs. The choice of those two options is very individual and will depend on couple of factors like cash availability, cash flow at the different rates, and the possibility of a tax advantage for points paid. For example, if the par interest rate is 6% the buyer can either choose to take 6% and pay from .500 to 1.500 in discount or can take a hieher rate and pay no discount.

Unless the buyer has previous landlord experience, Fannie Mae guidelines specify that the buyer must qualify for the loan including the full PITI on the proposed purchase with no credit for rental income.

Credit must meet normal guidelines for the program chosen as must asset and sorce of income.

Lenders do not discount the rates on invetor loans due to market conditions.

Just to add to the discussion - look for properties that have an assumable mortgage - then it is usually easier to qualify.