Trying to buy a rental property.

[Jason Cirioni]

My situation is I'm trying to to buy an investment property in Florida that will be come our primary residence in about 3 years once I retire from the service. I'm located overseas now and live off base. I own a house in New Mexico which has been rented out for the last 2 yrs. I have a couple questions related to DTI. First is does my current rent get factored into the DTI since I'm overseas and I get an allowance to offset that cost? Second question is does my first mortgage payment get factored into my DTI? My mortgage payment is $586 and I get $1000 for rent. I've talked to a broker who said my rent would essentially wash my mortgage payment off my DTI. However when I use the online calculations and include my mortgage and the rental income its still negatively affects me. Any advise or info would be greatly appreciated.

[Upen Patel]

@Jason CirioniThank you for your service.

* Yes, your current rent would be factored it, but as you said you are getting an allowance which would be counted as income.

* 75% of your rental income would be counted to offset the PITI for the rental property. If your #s are right then it will actually improve your DTI.