Rentals, duplexes and short-term rentals, financed on the property as much as on you. Tell Steev the plan and not just the address, because the plan decides which program fits.
A debt service coverage ratio loan qualifies on the rent the property brings in rather than on your tax returns. For an investor who writes off aggressively, that difference decides whether the deal happens at all. Expect a larger down payment and a rate above a primary residence, and expect the underwriter to care about the lease more than about your W-2.
Buy a duplex, live in one unit and rent the other, and the whole building finances as a primary residence. The down payment drops accordingly, and some programs count part of the projected rent toward what you qualify for. Two to four units qualify. Five and up becomes commercial, which is a different file.
Denver, Colorado Springs and every mountain town write their own short-term rental rules, and those rules change what a lender will do with the file. Some lenders count platform income, some ignore it, and a license cap in the county can affect the appraisal. Tell Steev the town first, because the town decides more than the property does.
Conventional financing caps how many loans you can carry, and portfolio lenders pick up where that cap ends. Investors who plan three purchases over two years get financed differently from investors buying one. Cash-out refinancing an early property often funds the down payment on the next, and the sequence gets cheaper when it is planned.
A debt service coverage ratio compares the rent a property brings in against the payment it has to cover. Divide the monthly rent by the monthly principal, interest, taxes, insurance and any association dues. Most lenders want the answer at or above 1.00, and the pricing improves as it climbs.
That single number is why a property your tax returns would never support can still finance cleanly. Bring the lease or a market rent analysis and Steev can run it on the first call.
Start Your ApplicationBring the address, the rent and the plan. Steev will tell you which lender takes that deal and what it costs.