I will like to buy an investment property.Will I qualify ?
Investors who are interested in aquiring real estate to balance their investment portfolio and build their equity position should consider that lenders have certain requirements when buying those properties:
- if you are self-employed and cannot prove income,certain conditions apply
- your credit history must be better than average, many lenders require a minimum Beacon score for such purchase
- certain lenders do not accept borrowed downpayment, you must save it yourself
- loan to value(LTV) ratio may me lower than when buying an owner-occupied property
- location, size, number of units and type of property you are buying can differ from lender to lender
- total number of properties that you own it's an important factor
- mortgage interest rates for an investment property can be higher , depending on the lender
- same lenders will not be offering variable rates for certain properties
- maximum amortizations conditions apply
- minimum personal worth required by certain lenders
TIPP!!!
Did
you know that the interest portion of your rental property mortgage payments
may be tax deductible?