Qualifying for an investment Mortgage

Does not having a mortgage for a primary residence have any bearing on qualifying for a mortgage on an investment property? I currently do not own my residence nor do I pay any rent… and have not for the past 10 years. I have been living with and taking care of an edlerly parent. Currently my credit score is over 720 and in two months all negative marks will be gone… 2 satisfied judgements from 7 years ago.

I think that would help you get an investment loan, easier, actually. When it comes to loans … one of the big things bankers look at is your debt to income ratio. For example - they may see you make $75k per year in total household income … and after after reviewing your tax returns, credit, etc … they may calculate your DTI ratio (debt to income ratio) at 35% and will then say you qualify for a $150k loan amortized over 30 years. You will probably pay a bigger percentage down on an investment property than say a owner occupied property, but as long as you got cash in the bank that shouldn’t matter.

You should talk to some banks in your area and ask them. Their criteria will differ, as will insurance company’s. Most likely if you have a good income and a good credit history, they will ask for a letter explaining your situation. With exception of some members in the military, it is not common for people to own an investment property but not a primary residence. It’s not impossible, just ask around.


Thanks for the input I will check around and see what they say.