Updated over 2 years ago on . Most recent reply
Estimating buying potential
I’m attempting to figure out a rough estimate of my purchasing power and want to make sure I am doing it correctly. From what I understand, all monthly liabilities, principal, interest, taxes, insurance, mortgage insurance and personal liabilities( such as car payments) cannot exceed 50% of your monthly debt to income. If I am planning on house hacking, can I use 70-80% of my potential rent as income as well? And would that 70-80% be added to my income before or after dividing it by 50%?