Basic Investment Home Loan Requirements

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An investment home loan has certain criteria that you have to meet in order to qualify, and not everyone will be able to because it is rather difficult. An investment home is viewed as a high-risk investment by a lender when compared to an owner-occupied home. The thought process behind that is that most people will pay for their homes before they pay for an investment in times of financial strife. Here are a few basic requirements to keep in mind if you want to buy an investment home.

Large Down Payment

In most cases, you will have to come up with a large down payment. Depending on the lender, you may have to put up as much as 20 to 30 percent of the purchase price. This requires that you have some savings before you think about buying. Additionally, most lenders require that you have at least 6 to 12 months of mortgage payments in your bank account.

Good Credit

If you want to borrow the money for the investment property, you have to have a good credit score. You will have to be in the top tier of credit scores in order to qualify. 


You will have to meet your specific lender's criteria and be able to make both your regular payment and the rental property payment. They will want to see that you can afford both your mortgage and the mortgage of the investment property.