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These are known as investment property loans. This one is quite easy to understand and makes a lot of sense. Simply put, if the rents cover the mortgage, you’re good to go!
Example: An investor purchases a single-family home, putting down 20% with the intention of renting the home out. The payment, including principal, interest, taxes and insurance is $1,000 and the market rents for a property like this one is $1,150. That investor does not need to prove Income to qualify. The rents cover the mortgage.