Lending Guidelines for Investment Loans

[Thomas Ferreira Jr.]

Hey guys,

I am just about finished getting a Heloc on a multfamily that I do not live in. I was surprised to find myself denied due to my DTI ratio. I think a big part of the problem is that as a fireman a large portion of pay is above my regular salary, I had this same problem w/ the first morgage on my home. PenFed counter offered w/ an interest only Heloc only a few grand less than I requested, so this wasnt a big deal.

However, it has me a little nervous going forward. I asked them if they had a list of requirements I could use to ensure that when I come them for an investment loan I can meet their standards and not waste everyones time coming to them with a loan app that will be denied. I was told they do not release their lending guidelines. 

Does anyone have the inside scoop? What are the numbers you guys think I should have in place before going to PenFed for an investment loan? Cash on Cash ROI? Cash Flow? Any other tips for ensuring that the purchase loan on my third property (second investment property) goes through?

As always, Thanks in advance,

Tom Ferreira