Real Estate Agent · Richardson, TX · Member since 2014 · 511 posts · 161 votes
Hi,
I'm considering buying a condo for myself. However, I'm a bit concerned because I'm planning on refinancing a property and pulling equity out of it.
Assuming I buy the condo, is it possible lenders would deny my refinance application ? The property is owned free and clear. Right now I don't have any debt, but if I buy the house my debt to income ratio would be close to 35 %.
Rental income will be considered if it was filed on your taxes or if you have it leased out, 75 percent if the lease amount will be considered as income. Every lender is different for what they consider as a max for a DTI. It generally is in the mid to low 40's that most lenders will accept. Every mortgage is going to affect your credit and your DTI's.
A good idea would be to get pre-approved for both and see what and if you qualify for either or both. That way you can make an informed decision on how you want to move forward.