What do I need to get a mortgage for a rental property?

You will probably want to contact a lender to see what their requirements are. You will probably need to prove your income and expenses, provide a 10-30% down payment, have some money in the bank as reserves, and have pretty good credit.

 

The property will probably need to have a Debt Service Coverage Ratio (DSCR) at 1.1 or above. You might be able to convince a lender to go down to 0.9, but it could be pretty difficult to do that. Please visit the links below to learn more about the DSCR.

 

What is Debt Service Coverage Ratio?

How do I calculate Debt Service Coverage Ratio?

 

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