Two mortgages at the same time, will they know?

[Rivy S.]

Here's the background: I have an investment property under contract here in the DFW area, and we are actively looking for a primary residence as well. Both together might possibly put me over DTI restrictions. (I've got two others in my name as well)

So I was wondering, if I apply for both mortgages as the same time, will each one know about the other?  For my other loans, the credit checks were run a couple of weeks before closing, so at the time the reports are run, neither of these loans would show.  Is this information that I need to disclose? 

To be clear, I'm not trying to be fraudulent! But if it's not totally against the rules, I'd love to maximize my borrowing power.  If I'm not able to do it, we'll have to put one of them in my husband's name, but again, I'm trying to maximize our borrowing power. 

[Chris Mason]

Originally posted by @Rivy S.:

@Chris Mason Thanks for the response!

Just out of curiosity, they will know because I have to tell them, or because there's a system in place to let them know that this is going on?

Also, why won't the cashflowing property be a problem?  I don't think it will cashflow at 43% of the mortgage payment, so wouldn't the loan add more to the debt, than the rent will ad to my income, hence worsening my ratio?

 Hi Rivy,

Q1: Both. Lender will find out, and it's a huge flag when underwriting finds out that you were trying to hide it.

Q2: Someone is feeding you bad math. That's owner occupied 2-4 unit math, not investment property math. Pure investment property math is far more generous. [ Rent * 75% - PITI = X ] If X is a positive number, your DTI is improved and there is no liability included in the DTI math. If X is slightly negative, say -$175, then that $175 is included as a debt (but not the entire PITI).

Do them concurrently & be transparent with your lender. Close both at once.