To Buy Investment Property | How

The current market favors "value-add" opportunities—homes needing work—as move-in-ready properties remain highly competitive.

Before browsing listings, you must secure your "bankability". Investment property loans are considered higher risk, so lenders impose stricter requirements than for primary residences. how to buy investment property

: Lenders typically require 6 to 12 months of mortgage payments (PITIA) in liquid reserves to cover potential vacancies or repairs. : Lenders typically require 6 to 12 months

: Budget for a minimum of 15% to 20% down. Putting down 25% often unlocks significantly better interest rates. : Keep your non-housing debt below 28% of your gross income

: Keep your non-housing debt below 28% of your gross income. Most lenders allow up to 75% of your expected rental income to count toward your qualifying income. 2. Choose Your 2026 Strategy

: Aim for at least 680 to qualify for the best terms; while some programs accept 620, they come with higher costs.

Investment Property Loan Guide | 2026 Guidelines and Process