The requirements for obtaining an investment property loan can vary depending on the lender and the loan option. Typically, lenders will consider factors such as the borrower’s credit score, income, and debt-to-income ratio, as well as the property’s value, location, and potential rental income. You may look at buying a property which earns a higher than normal rental, and in these cases most lenders restrict the amount of this rent to be included in servicing. But the plus is, if your loans are structured correctly this additional rent can help reduce your owner occupied home loan.

Some lenders may have restrictions on the type of property that can be financed with an investment property loan, such as a maximum number of units or a minimum property value. However, at Pedley Finance we have access to many lenders all with differing underwriting guidelines to accommodate a variety of property types and credit profiles.

It may be more challenging to obtain an investment property loan if you have bad credit, as lenders will typically have higher credit score requirements for investment properties. However, it’s not impossible. We work with a variety of lenders, some of which specialize in working with borrowers with less-than-perfect credit. We’ll work closely with you to find a solution that fits your specific needs. One case in point I did a loan for a bankrupt client some years back and today he has a net asset position close to $2million, just knowing who to use and when to use them.