Loans Based on Rents

[Jason Barton]

Hello,

I am looking to invest in a multiunit property, but I am nearing the debt to income ratio most banks require. I do not have the funds to pay all cash for the properties I am looking at. I am curious as to how specifically loans work that is based on rents? As I understand most look at the income against expenses and assume a 10-20% vacancy factor.

1. Are there general rules for these kinds of loans (i.e. rent must exceed expenses and debt servicing by X %, down payment requirements )?
2. Are the specific banks that focus on these kinds of loans?
3. Assuming the rent pencils out is your debt to income still a factor?

Any guidance is most appreciated

Regards

Jason