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Updated almost 11 years ago on . Most recent reply
Financing
Because I'm new to this, I'm sure this question may seem stupid. When buying a house to live in, a financial institution looks at your salary and your expenses. But, how do finance institutions allow people to have multiple mortgages on the investment properties they own and don't live in? Is the equity of one property considered?
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#3 Guru, Book, & Course Reviews Contributor
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Welcome to BP, Tammy.
Non owner occupied conventional mortgages require more of a down payment, often 25% and more so yes, equity is a big factor. Their DTI is also a factor, after you have experience a lender may then count the rental income from other properties and the property being purchased to qualify for the new loan. :)