Investors and future landlords
Investing in rentals
This path covers house hacking, keeping your home as a rental, DSCR loans and self-employed income.
Steps
- Becoming an investorReal estate investing can start with a 2 to 4 unit home you live in, renting out your old home or buying a rental. Lenders usually count 75% of rent.
- DSCR loans for rental propertyA DSCR loan qualifies a rental on its rent, not your income. Rent divided by the full payment gives the ratio, and many lenders want 1.0 or more.
- Buying when you are self-employedSelf-employed buyers qualify with tax returns or bank statements. Write-offs that lower your taxes also lower the income a lender can count.
- How much house can you afford?Your debt-to-income ratio compares monthly debts with income, and each loan type sets its own line. Your own budget should come first.
- Comparing lenders the right wayTo compare mortgage lenders fairly, get Loan Estimates on the same day for the same loan at the same rate, then compare Sections A, B and C on page 2.
- Cash-out, or a second mortgage?A cash-out refinance re-prices your whole mortgage balance. If your current rate is low, a HELOC or home equity loan on top may cost less overall.
- At the end: see it with your own numbersDaniel builds your Mortgage Plan: every option that fits, side by side, with your payment, cash to close and cost over time.