To secure a loan for purchasing multiple homes, first assess your credit score and debt-to-income (DTI) ratio. Lenders typically require a minimum credit score of 620–680 for conforming loans and higher for jumbo or non-conventional options. A DTI below 43% is ideal, as per Fannie Mae guidelines. Save for a larger down payment (20% for conforming loans, 10% for jumbo) and closing costs, which can exceed 2–5% of the purchase price per property. Pre-qualify with multiple lenders, including banks, mortgage brokers, and hard-money lenders, to compare terms. For multiple properties, consider a blanket loan or portfolio mortgage offering combined financing. Document stable income, tax returns, and proof of assets to demonstrate repayment capacity.

The importance of these steps stems from lenders’ risk mitigation strategies. A higher credit score reduces default risk; studies show scores above 740 lower mortgage defaults by 50% compared to scores below 620 (Federal Reserve, 2022). A DTI below 43% aligns with conforming loan standards, ensuring eligibility for lower rates and avoidable origination fees. Multi-home purchases often require larger down payments due to higher loan amounts and lower LTV ratios, which improve equity and collateral value. For example, a 20% down payment on a $500,000 home preserves $100,000 in equity, enhancing lender confidence. Data from the National Association of Realtors (NAR) reveals that 35% of homebuyers purchased two or more properties between 2020–2023, driven by rental demand and investment growth. Blanket loans, which bundle multiple properties into one mortgage, accounted for 12% of non-conventional loans in 2023 (Mortgage Bankers Association), reflecting market demand for efficient financing. Ultimately, structured planning and lender collaboration minimize borrowing costs and maximize purchasing power.