Employment must be verified for a minimum of 2 years. Job changes may be allowed as long as it is in the same line of work. Self employed borrowers must prove business for a minimum of 2 years.

Assets must be verified with 3 months bank statements. Gift funds may be allowed but must be verified. Gift limits vary depending on program.

Credit worthiness is weighed heavily. A minimum credit score of 620 is required.

You may not have purchased a "primary residence" in the last 12 months without substantial documentation as to the reason for a change in residency (i.e. divorce)

Housing to Income Ratio should be 28%
Total Debt to Income Ratio should be 36%

These ratios may be exceeded somewhat depending on the total loan scenario.

Bankruptcy discharged over 4 years with re-established perfect credit. Must provide documentation as to the reason for bankruptcy.

Foreclosure (or deed in lieu thereof ) settled over 24 months.

HUD maximum loan amounts:

• Single Family $300,700
• Duplex / 2 units $384,900
• Triplex / 3 Units $465,200
• Quad / 4 Units $578,150

Only 75% of the rental income can be considered for qualifying purposes. Many lenders may require an operating income statement from the appraiser for an additional cost of approximately $100.

Regardless of how much the property "supports itself", the income and liabilities of the investor are still considered. Debt to income ratios are held to tightly.

You may be required to provide copies of current leases for all rented properties. When negotiating the purchase, request copies of all current leases.

Many lenders price rates differently depending on the number of units, i.e. 1-2 units would be a lower rate or less cost than 3-4 for some lenders, yet others price any properties over 2 to 4 units the same.

Any property with over 5 units is considered a commercial investment. These properties do not meet FNMA requirements.