What rental-income evidence and reserves are needed for an investment property?

Applies to: United States.

The checklist depends on the investor program, the property and whether you are buying or refinancing. Rental-income evidence, funds for closing and cash reserves are separate parts of that checklist.

For a purchase, the rental-income assessment may use the appraiser's Form 1007. Your processor will confirm the rental evidence required for the property and program.

How much cash must I show?

• Down payment and closing funds: provide the account evidence requested for your chosen route.
• Reserves after closing: some DSCR options have no required reserves, while a full-document route described by the team requires six months of reserves. Additional reserves may affect the available terms.
• History of the funds: a route may require funds to be seasoned for at least one bank-statement cycle. Confirm the applicable period before moving funds or arranging the required balance.

Ask for the checklist and reserve calculation for the program actually being proposed. A no-reserve option does not remove the need to show the funds required to close.

Tell the team at the start if the property will be furnished, rented for only a few months at a time, or used for another nonstandard tenancy. Those features can affect which rental evidence and program are suitable. For a refinance, confirm its separate evidence requirements.