the loan type the borrower is seeking.

A mortgage lender may also have restrictions on the number of different properties an investor may own. Some lenders cap this at 4 properties, while others have no caps at all on the number of rental properties a borrower can have.

Property Types Lenders may also restrict borrowing to certain property types. This may include single family residences, condominiums

Basics A 100% non owner occupied purchase usually involves:

• Credit
• Income documentation
• Loan sizes
• Property types

Credit Mortgage lenders typically require a borrower who wants to buy investment property to have good credit. A credit score over 680 or 720 is generally more desirable, although different lenders offer different options. The borrower usually needs to have no mortgage lates on any of the properties they currently own. Lenders do not want to makes loans to borrowers who cannot properly manage their rental properties.

Income Documentation There are three basic mortgage documentation types:

• Full documentation
• Partial documentation
• Stated documentation

Full documentation involves disclosing to the mortgage lender a wide range of personal items, including:

• Income tax records
• Recent pay stubs
• Bank accounts
• Retirement funds
• Employment documentation

Partial documentation is documenting some items and not others. This is usually documenting assets but not income. For 100% non owner occupied purchase loans a borrower often needs to show substantial assets. Many times this may be 6 months of “reserves”, which is 6 months of assets to cover the property’s full expenses. These assets are usually in the form of cash in the bank, but may be able to use a discounted amount on retirement assets. Loan Sizes A 100% non-owner purchase loan usually involves loan limits. These loan sizes are often up to $500,000. This is something that is determined by individual lenders, and can change over time or depending on the loan type the borrower is seeking.

A mortgage lender may also have restrictions on the number of different properties an investor may own. Some lenders cap this at 4 properties, while others have no caps at all on the number of rental properties a borrower can have.

Property Types Lenders may also restrict borrowing to certain property types. This may include single family residences, condominiums,

e no mortgage lates on any of the properties they currently own. Lenders do not want to makes loans to borrowers who cannot properly manage their rental properties.

Income Documentation There are three basic mortgage documentation types:

• Full documentation
• Partial documentation
• Stated documentation

Full documentation involves disclosing to the mortgage lender a wide range of personal items, including:

• Income tax records
• Recent pay stubs
• Bank accounts
• Retirement funds
• Employment documentation

Partial documentation is documenting some items and not others. This is usually documenting assets but not income. For 100% non owner occupied purchase loans a borrower often needs to show substantial assets. Many times this may be 6 months of “reserves”, which is 6 months of assets to cover the property’s full expenses. These assets are usually in the form of cash in the bank, but may be able to use a discounted amount on retirement assets. Loan Sizes A 100% non-owner purchase loan usually involves loan limits. These loan sizes are often up to $500,000. This is something that is determined by individual lenders, and can change over time or depending on the loan type the borrower is seeking.

A mortgage lender may also have restrictions on the number of different properties an investor may own. Some lenders cap this at 4 properties, while others have no caps at all on the number of rental properties a borrower can have.

Property Types Lenders may also restrict borrowing to certain property types. This may include single family residences, condominiums

ge of personal items, including:

• Income tax records
• Recent pay stubs
• Bank accounts
• Retirement funds
• Employment documentation

Partial documentation is documenting some items and not others. This is usually documenting assets but not income. For 100% non owner occupied purchase loans a borrower often needs to show substantial assets. Many times this may be 6 months of “reserves”, which is 6 months of assets to cover the property’s full expenses. These assets are usually in the form of cash in the bank, but may be able to use a discounted amount on retirement assets. Loan Sizes A 100% non-owner purchase loan usually involves loan limits. These loan sizes are often up to $500,000. This is something that is determined by individual lenders, and can change over time or depending on the loan type the borrower is seeking.

A mortgage lender may also have restrictions on the number of different properties an investor may own. Some lenders cap this at 4 properties, while others have no caps at all on the number of rental properties a borrower can have.

Property Types Lenders may also restrict borrowing to certain property types. This may include single family residences, condominiums

“reserves”, which is 6 months of assets to cover the property’s full expenses. These assets are usually in the form of cash in the bank, but may be able to use a discounted amount on retirement assets. Loan Sizes A 100% non-owner purchase loan usually involves loan limits. These loan sizes are often up to $500,000. This is something that is determined by individual lenders, and can change over time or depending on the loan type the borrower is seeking.

A mortgage lender may also have restrictions on the number of different properties an investor may own. Some lenders cap this at 4 properties, while others have no caps at all on the number of rental properties a borrower can have.

Property Types Lenders may also restrict borrowing to certain property types. This may include single family residences, condominiums

the loan type the borrower is seeking.

A mortgage lender may also have restrictions on the number of different properties an investor may own. Some lenders cap this at 4 properties, while others have no caps at all on the number of rental properties a borrower can have.

Property Types Lenders may also restrict borrowing to certain property types. This may include single family residences, condominiums, townhouses, and 1-4 unit properties.

Lenders may be less likely to offer 100% non owner occupied financing for other properties such as rural properties, modular homes, or manufactured homes.

There may also be restrictions on certain states or other areas, depending on the lender’s requirements. Some lenders will not lend at all in some cities.