Today we are going to talk about another mortgage myth. Mortgage myth number two is that you need a 20% down payment to buy a second property. That is not always the case. If you're buying a second property for your family to live in, you can actually buy that home with as little as 5% down.

When you buy an investment property, the biggest thing you need to know is that the down payment requirement is 20% at a minimum. So you must have a 20% down payment to buy a rental property, but the really cool thing about buying an investment property that most people don't fully understand is that we get to use rental income to help you offset the cost of that property. What that means is it is actually much more, much easier for you to qualify for a rental property than most people believe.

Today we're going to talk about rental property purchases. When you buy a rental property, the down payment requirement is a minimum of 20%. When buying a rental property, the lender must confirm rental income by way of either a lease agreement or what's called a market rents letter. Rental properties are a wonderful way to build your wealth through real estate, while having somebody else pay the expenses for you.