To get a BTL mortgage, the borrower needs to meet basic requirements as listed below:<\/b><\/p>

As mentioned above, you will need a minimum of 25% down payment to buy an investment real estate property depending on your credit rating.\u00a0<\/b><\/p>

Mortgage requirements for renting a property are less strict if you plan to live in the house. Let’s say you buy a two-unit townhouse and plan to live in one of the units. In such a case, you can make a 15% down payment.<\/b><\/p>

If you are looking to have an even lower down payment than 15%, you can consider an FHA or VA loan to purchase your investment real estate property.\u00a0<\/b><\/p>

If you do not have enough down payment to qualify for a conventional BTL mortgage, using FHA or VA loan for buying an investment property may lower your down payment requirement.<\/b><\/p>

You can also use potential rental income to obtain a BTL mortgage. Lenders will consider $ 0.75 for every dollar based on the current market rental rate if you consider rental income in your application.\u00a0<\/b><\/p>

If the market rental price of a property that is similar to the investment property you are buying is $ 1,500 per month, the lender will consider $1,125 per month while calculating your income ratios.<\/b><\/p>

The stronger your overall financial profile, the more flexibility a lender can offer with down payment and interest rate requirements.\u00a0<\/b><\/p>

High credit scores, combined with six-month cash reserves and a low debt-to-income ratio (DTI), are key to approving buy-to-let mortgages.\u00a0<\/b><\/p>

The minimum credit scores most lenders require for qualifying for a BTL mortgage are 680 to 700. If you have a credit score better than that there is a possibility that you can qualify for a better interest rate.<\/b><\/p>

A six-month cash reserve is necessary for repairs and reimbursement of rental costs, which will inevitably be reflected. Owning a rented property means that you are responsible for the maintenance, repair, and other property-related costs.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t