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Andrade Real Estate Services

Investment

  • Investment
  • Traditional
  • 620 Min FICO
  • 15% Min Down

The Conventional Investment Loan Program is designed for buyers purchasing real estate for rental income or appreciation. These loans carry more risk for lenders, so they require higher credit scores (minimum 620), larger down payments (15–25%), and stricter debt-to-income requirements compared to primary residence loans. Mortgage insurance is not available on investment properties, meaning borrowers must meet down payment thresholds to qualify. This program allows financing for 1–4 unit SFRs, condos, or PUDs that will not be owner-occupied, with rental income potentially used to qualify depending on underwriting guidelines.

 

This program is ideal for buyers who:

  • Have a credit score of 620 or higher (higher scores improve pricing).
  • Plan to rent out the property for income.
  • Want to purchase 1–4 unit properties strictly as investments.
  • Can meet higher down payment requirements (15–25% depending on property type).

Property Type

Credit Score

Min Down

Notes

SFR

620+

15%

Standard purchase financing. PMI not available.

2-4 units

620+

25%

Borrower must meet reserve and rental income requirements.

Condo

620+

15%

Standard purchase financing. PMI not available.

Manufactured Home

N/A

N/A

Not eligible under Conventional investment purchase guidelines.

Residency Eligibility

Eligible


  • Valid SSN — must have a valid Social Security Number (SSN).
  • Permanent residents — must provide a valid, unexpired Green Card.
  • Non-permanent residents — eligible with valid visa or Employment Authorization Document (EAD).

Ineligible


  • ITIN borrowers are not eligible.
  • Foreign nationals are ineligible.
  • Borrowers without a valid Social Security Numbers (SSN).

Occupancy Requirement

Investment Use


Borrower will not occupy the property.

Note


Rental income may be used to qualify when documented per guidelines. Use 75% of the gross monthly rent from the lease, or 75% of market rent from Form 72 or Form 1000 if no lease, reflecting a 25% vacancy and expense factor.

Income Consistency Requirements

Employment History


  • Two years of employment history required with the same employer or with different employers in the same line of work,
  • One year may be acceptable if the borrower has at least five years of prior experience in the same line of work or holds a professional license in that field,
  • Education or training may be used to fill gaps in history,
  • If on temporary disability, income used will be the lower of the disability pay or the regular employment income.

Notes


  • Frequent job changes are allowed if they are within the same line of work and the income is stable or increasing, provided this is supported by documentation,
  • Gaps over 6 months require explanation + current 6 months continuous employment,
  • Education and training must be documented with transcripts, diploma, certificate, professional license, or official school/training program documentation,
  • An employer’s letter is required and must confirm the return-to-work date. If the return-to-work date is before the first mortgage payment, use regular income; if the return-to-work date is after the first mortgage payment, use the lower of disability income or regular income.

Income Type

Requirement

Documentation

Wage Earner

2 years stable employment history (gaps allowed if explained). Must show likelihood of continuance.

30 days paystubs + 2 years W-2s; VOE if required.

Self-Employed

2 years of self-employment required (1 year possible with ≥5 years prior work history in same field or relevant professional license.). Must demonstrate stable or increasing income.

2 years tax returns; YTD P&L; business bank statements if requested.

Part Time

2-year history required; must be likely to continue.

W-2s, paystubs, VOE verifying hours and history.

Seasonal

2-year history required; must be likely to continue.

W-2s, paystubs, VOE or employer letter confirming rehire pattern.

Social Security, Disability, and Retirement Income

Must be expected to continue ≥ 3 years.

Award/benefit letter (SSA, pension, disability) + proof of receipt (bank statements, 1099s, or deposits).

Alimony / Child Support

Must be court-ordered or written agreement; ≥ 3 years continuance.

Divorce decree, separation agreement, or order + 6 months proof of receipt.

Down Payment Funds

Eligible Sources


  • Borrower’s own funds,
  • Large deposits,
  • Retirement (401k / IRA),
  • Sale of assets.

Requirements


  • Freddie Mac requires 1 month of bank statement,
  • Fannie Mae requires 2 months of bank statements required,
  • Large deposits must be sourced
  • Gift funds not allowed
  • Retirement funds require withdrawal terms + statements,
  • Asset sales require bill of sale + proof of deposit.

Gift Funds & Rate Buydowns

Gift Funds


Not permitted for investment purchases. Borrower must use their own funds for the minimum contribution.

Temporary Interest Rate Buydowns


Not allowed on investment purchases.

Loan Amounts

Minimum Loan Amount


Must meet FHFA conforming loan limit values.

Minimum Loan Amount


$50,000 minimum (case-by-case exceptions possible).

Property Types

Eligible


  • SFRs (Single-Family Residences),
  • 2–4 Units (must occupy one unit),
  • PUDs (attached/detached),
  • Condominium (attached/detached), Fannie Mae warrantable,
  • Modular/prefabricated properties 1-unit only,
  • Manufactured Homes (on permanent foundation, at least 12 feet wide and have a minimum 400 square feet of gross living area.).

Ineligible


  • Non-Warrantable Condos,
  • Condo Hotels or Motels (projects managed or operated as hotel/motel, hotel/motel conversions),
  • Unique properties,
  • Agricultural-type properties, farms, orchards, ranches,
  • Properties zoned for agricultural use
  • Commercial property,
  • Vacant land or land development properties,
  • House Boats, boat slips, timeshares and other forms of property that are not real estates,
  • Manufactured home located in age restricted community,
  • A manufactured home moved from another site (i.e., previously installed at another site) Home must have been delivered directly from the manufacturer/dealer to its current site.

Seller Contributions

Maximum Contribution


  • 2% maximum.

Allowed Uses


  • Allowed uses include closing costs, prepaid expenses (taxes, insurance, escrow), discount points.
  • Cannot be used toward down payment or reserves.

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

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