Need house hacking advice

3 Replies

Hey guys, Here’s my situation, I had bought a 3-family home last year, lived in one of the apartments for a year and now moved back in with my father to get that extra income from the 3rd unit which is basically house hacking. Now I just applied to try to get another 2-4 unit home, owner occupy it again. The lender just called and said they will not accept the rental income from my current home unless the next home I buy is 100 miles away; so that makes my Debt to Income ratio at 53% and far to high to qualify for any mortgage. The lender said the only way they would accept the rental income is on a conventional loan that I MUST have 20% down payment. I don’t understand why they cant use my rental income as income. What I’ve read and researched was you could have a down payment between 3-5% as long as it’s owner occupied. Looking for much needed advice I’d appreciate it. Trying to get out of the rat race.

@Allen McGlashing   A lot of lenders won't even use rental income until it shows up on a tax return which can be tough. Not all of them have the same requirements so if I were you I'd keep shopping around and see if there's a lender in your area who is a little more flexible. 

Generally, you need two years rental income for lenders to count it. Beyond that, you should be able to find a lender who will work with you, make some calls, visit local and regional banks and credit unions.

Ok thank you what I’ll do is try to shop Lenders and try to explain my situation before hand so each lender won’t have to run my credit. Someone is bond to count the rental income to the DTI ratio.

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