For a single-unit investment property purchase, a 15% down payment is typically required for an LTV of 85%. 2-4 unit investment property purchases normally require a 25% down payment for an LTV of 75%.
Required income for financing your investment property will vary depending on the amount of the monthly mortgage payment and other debt considerations. The total debt-to-income ratio (including the mortgage payment) generally cannot exceed 45%. Consult with your Personal Mortgage Advisor for information that pertains to your situation.
Typically, you will have to wait through a six (6) month seasoning period prior to using a cash out refinance to take equity out of your investment property. There are programs, such as Ark’s Cash Advantage Program (CAP), that may allow you to cash out immediately after your purchase. Contact a Mortgage Advisor to discuss the specific programs and their guidelines.