I'm looking to buy a investment property. A mortgage lender told me that I don't have enough income to qualify for a investment property. I purchased my primary home in December of last year. I have good credit and have been on my job for 7 years. Does anyone have any suggestions on what I should do next? Any advice would be greatly appreciated.
Sounds like the issue is your debt to income ratio. Ask the lender if you buy a rental property that already has tenants with leases, if they will count 75% of the rent money as income for you. Most banks will, and that may get you over the DTI hurdle.
I don't have facts in front of me but try to get eligibility for loan amount. Sometime you have lower loan eligibility may be that lender is not lending on that loan amount. Try to work with couple lenders and see if its makes difference.
Hi James and Harjeet,
Thanks for the advise. Both replys are very helpful.