27 year old male, 730 credit score, 40% DTI, first time home buyer

[Eric McArthur]

27 year old male, 730 credit score, 40% DTI, no student/car/medical debt, first time home buyer looking for estimated max loan amount

Hello,

I understand that this is a case by case question with many variables involved.

I am a 27 yr old.

I make currently $67,200 gross annually.

I live in CA and am looking to invest out of state in either OH or FL. Looking to invest in multi family rental properties (2, 3, 4 units)

First time home buyer, looking for an investment loan or an FHA loan if I can find something local (unlikely but not impossible).

I understand there are different rules/regulations per state but am looking to get a general idea of what I can expect for a max loan amount to be able to strategize.

Would like to get some internet wisdom before I go through the pre-approval process, shop around for a loan and have it effect my credit score.

Thank you for the time.

[Matt Devincenzo]

Got it...so your 40% DTI only comes into play if you buy out of state and it prohibits you from borrowing enough to purchase. If you buy local then your DTI will be based upon how much loan you end up with since your current rent would be replaced by the mortgage.

Also in either case, when you get a tenant the DTI is a little different. Simple numbers just for this example...your mortgage and expenses are $1,500 your tenant pays $2,000. You'll take 75% of the rent ($1,500 =$2,000*.75) and apply it to your expenses. That would result in $0/mo impact to your finances...if the number is negative it will add to debt, if it is positive it will add to income. So if you can get started and cashflow then it should keep getting better from there.