I have met many lenders. Many people think that when buying a house in the United States, the first house must be a self-occupied house. In fact, this is not the case. Even if you are renting a house now, if you have certain funds and good housing, you can directly Apply for an investment property loan. And getting a loan to buy a house is far less difficult than you think.
What are the types of home buying in the United States?
Primary Home: As the name implies, it is a house you buy to live in.
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Second Home: refers to a house that you don’t live in for a long time, but you may stay there occasionally, such as a house near a tourist attraction or by the sea, etc.
Investment Property: It is a property that is purchased and rented out with the expectation of earning a profit, or by buying low and selling high.
In many places, due to geography, work location or environmental factors, home buyers may think that it is more suitable for investment than for self-occupation.
For example, in first- and second-tier areas slightly inland, such as Atlanta and Houston, the selling price of houses will be significantly lower than that in prosperous areas, but the rent is not much lower.
House prices and rents do not increase linearly, which is why in some places a 20% down payment can generate positive cash investment returns, while in other places a 40% down payment cannot recover the mortgage and local taxes.
The most common questions about U.S. home loan investment
1. How much income is required for investment property in the United States? Is there any difference between the review and the review for owner-occupied property?
There is no difference. The review of investment property income is still based on DTI (Debt-to-Income Ratio), that is:
mortgage + property tax + insurance + HOA + car loan + minimum credit card payment ≤ 50% of pre-tax monthly income
(the specific income and expenditure calculation ratio will change depending on the loan project)
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