: Lenders usually cap DTI at 43% to 45% . Importantly, they may allow you to count 75% of projected rental income to help you qualify for the loan.
Buying a house to rent out requires an investment property mortgage, which typically carries stricter requirements and higher costs than a primary residence loan. You should expect higher interest rates—often standard residential rates—and a minimum down payment of 15% to 25% . Mortgage & Financial Requirements buying a house to rent out mortgage
: Most conventional loans require at least 15% for a single-unit property and 25% for 2–4 unit properties. : Lenders usually cap DTI at 43% to 45%
Lenders view rental properties as higher risk, leading to more rigorous qualification standards: leading to more rigorous qualification standards: