conventional refi - use future rents to offset HELOC & mortgage

[Jill S.]

Hi everyone,

My husband and I are attempting to refinance a property in Colorado and are running into trouble due to the increase in interest rates. We are considering renting out our current owner-occupied home to decrease our DTI but I can't find an answer on how the HELOC on our home will be factored into the DTI. Will we be able to use future rents to offset the HELOC & mortgage or just the primary mortgage? Further, the HELOC is interest-only but does have an adjustable rate. Will lenders be looking at the current payment or the potential max payment? We have other rental properties but only 6 months of documented rents on our last 2 years of taxes, We do have prior rentals on tax returns from 5+ years ago if that makes a difference.

Thanks for any help you can offer!!