How to Get a Mortgage on a Rental House

Mortgage loans are available for rental houses.

Mortgage loans are available for rental houses.

If your lifestyle permits extra time to be a landlord, purchasing a house to use as a rental property can provide a source of additional income. Many lenders offer mortgage loans for rentals. Generally speaking, these loans are the same as a conventional mortgage, however, the approval conditions can be more strict depending on the lender. If you have an excellent credit score, stable income and money stashed away for a down payment, you have a good chance of qualifying for a rental home loan.

Determine what your spending budget is and factor in how much cash you have readily available for a down payment and the closing costs. Organize your financial documents, including old pay stubs and tax returns prior to completing any loan applications.

Research banks and lenders that offer mortgage loans for rental properties. Some lenders might refer to these loans as "non-owner occupied." Once you've found a loan option that meets your needs, apply for pre-approval.

Reach out to a real estate agent in your area to help you narrow down your search for available properties. The agent can provide you with listings of available homes in your price range and arrange a time to show them to you. When you find the house you want to buy, the agent will submit your offer to the seller and prepare a sales contract.

Complete the loan application with your lender. You'll be asked to provide proof of income and other documents if necessary. The lender will schedule an appraisal and inspection of the property during the underwriting process. Wait for the final approval decision and set a closing date.

Items you will need

  • Financial documents
  • Cash for down payment


  • Owning a rental property and serving as a landlord is a serious responsibility. Before you start the process, you should take some time to become familiar with your rights and responsibilities as a landlord. The city or town might have specific ordinances for rental properties and there might be laws to support the landlord-tenant relationship.


  • The lending criteria for a mortgage on a rental house is typically more strict than a conventional loan. You'll probably be required to have at least a 20 percent down payment in addition to excellent credit scores and enough income to support the monthly payments.

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