If I have properties in a trust that are paid off- would this count against me in dti ratio

4 Replies

if I have properties that are paid off and in a trust are those counted against dti (debt to income)?

Trying to buy more rental properties and banks says that my dti income is too high. 

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Since there is no debt it's easy to say it is not included. It's been my experience though that the bank will include associated costs of that property as debt even though it is paid off. They may include things like property taxes, hoa dues, and insurance. Basically any reoccurring costs you have. Appealing to lower your tax assessed value, shopping insurance and reducing debt in other parts of your life can really help. When you change both the numerator and denominator just a bit it really changes the quotient giving you a much more favorable number.

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