Qualifying for a second mortgage

[Peter Nierman]

Hi all, 

So I was recently looking at purchasing my first true rental property.  However, I apparently do not qualify for a second mortgage.  

I own a home in Seattle with my cousin, which has a mortgage of $350k.  Even though we co-own, the entire payment counts against me.  The other issue is I am paying $1450 per month on student loans.  

I have money for a down payment and could carry the mortgage of a second place on my own because I have renters in my home keeping my expenses down.  Any suggestions as to how I can buy a rental or should I just work on paying down my debt?

Thanks,

Peter

[Frank Jiang]

You need to find a bank that is willing to count your rental income into the DTI calculation. Every bank has different underwriting guidelines. Find a good mortgage broker who knows how to work with investors, explain your situation, and they will match you with the most agreeable bank.