DTI Calculation for Rental Property HELOC

[Gonzalo Escobar]

Quick question to the community regarding DTI calculation.

I know in the fannie/freddie world for a non-owner occupied property only the net of the monthly income over the PITIA is applied to the DTI.

So for example if a property brings in 5k in rent and has 4k in expenses, DTI is only affected by increasing income by 1k a month. If it was the other way around 4k in rent and 5k in expenses DTI would be affected by raising debt by 1k.

For HELOCs is DTI calculation the same on how they view rental properties?