Just saw this article yesterday about lenders tightening up their rules on approving loans for rental properties. Apparently, they're paying way more attention now to how much debt you already have compared to your income. Kinda makes sense, but also feels like it's gonna make things tougher for people who're just starting out or already juggling mortgages... Curious if anyone here's run into this issue lately or thinks this'll change the rental market much?
Ran into this exact issue a couple months back when I was looking at picking up another rental. My debt-to-income ratio wasn't terrible, but the lender was suddenly way more cautious than they'd been before. Had to jump through hoops proving my rental income was stable enough to offset existing mortgages. Honestly, I get why they're tightening things up—probably healthier for the market overall—but it does feel like it's gonna squeeze out newer investors or those already stretched thin... Wonder if this'll slow down competition a bit or just make cash buyers even stronger?
"Wonder if this'll slow down competition a bit or just make cash buyers even stronger?"
Yeah, good point. I've noticed lenders getting stricter too, especially around verifying rental income stability. Makes sense from their perspective, but it does feel like it's tipping the scales even more toward cash buyers. Curious if anyone's seen creative financing strategies lately—like seller financing or partnerships—that might help offset this shift for those of us who aren't sitting on huge cash reserves?
I've seen seller financing pop up a bit more lately, but honestly, it's still pretty rare. Most sellers just want their cash upfront. Maybe partnering up could work, but then you're splitting profits... trade-offs, right?
I've definitely noticed lenders tightening up lately. Last month, I went through the whole pre-approval process again, and it was way more detailed than a couple years ago. They dug deep into my student loans and even questioned some small monthly subscriptions I had forgotten about. Felt like they were really nitpicking every dollar spent.
Seller financing sounds good on paper, but yeah, it's not something I've personally come across much either. A friend of mine did partner up recently to buy a duplex, and while they're splitting profits, they're also splitting headaches—maintenance costs, tenant issues, etc. Seems like a decent trade-off if you're cautious about who you partner with.
Personally, I'm holding off for now. With interest rates climbing and lenders getting pickier, I'm just trying to build up a bigger cash cushion first. Maybe things will loosen up again eventually...or maybe I'll just have to get used to jumping through more hoops.
