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Matt Holmer
  • Attorney
  • Bettendorf, IA
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106
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Fannie DTI ratio with new rental income

Matt Holmer
  • Attorney
  • Bettendorf, IA
Posted Jul 7 2015, 07:20

Quick question regarding DTI for a Fannie loan.

As I understand that new rental income (less then 2 years) is calculated as:

Gross rent * 75% - DITI = income added 

What I don't know is whether or not the DITI still counts as a liability.

For example if DITI is 500 and rent is 1000, that nets 250 of income based on the above calculation. Does the $500 still count as a liability or is it completely wiped out?

Hope thatquestion makes sense. Thank you!

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