Rental Property Investor · Oklahoma City, OK · Member since 2015 · 29 posts · 18 votes
Hi All!
Do most lenders take your investment properties into account when calculating debt to income ratios? We're basically maxed out on our debt to income ratio now because:
1) We have our primary home
2) We have two other properties that are now rentals because we are always relocating with my husband's company.
-We don't have any other debts, no credit card, no auto, nothing, just properties and we are maxed out. I really want to invest in property but not sure how I can get to our goal of 10 properties if all properties are taken into account for the calculations.
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Lena Truong Most conventional lenders will consider the income of the property after you have been renting it for 2 years (and make sure you declare the income on your taxes). Secondly, look for lenders that are less conventional lenders, like portfolio lenders.
Rental Property Investor · Oklahoma City, OK · Member since 2015 · 29 posts · 18 votes
9y
Josh Compton thanks, I've had one of them rented since 2010 and the other one will be 18 months BUT Jason Hirko I haven't had that one on my income tax yet. 2016 income taxes will be the first year reporting the 2nd property as a rental. Darn CPA :) he recommended I just listed it as a secondary home because we were renting it to family. I pressed them to list that property as a rental property a few weeks ago when I figured I can maximize my taxes on it with depreciation. Thanks for the input
Do most lenders take your investment properties into account when calculating debt to income ratios? We're basically maxed out on our debt to income ratio now because:
1) We have our primary home
2) We have two other properties that are now rentals because we are always relocating with my husband's company.
-We don't have any other debts, no credit card, no auto, nothing, just properties and we are maxed out. I really want to invest in property but not sure how I can get to our goal of 10 properties if all properties are taken into account for the calculations.
Your DTI is based on the payments that will show up on your credit report and the your gross income. All the homes that you have will be included as well and you can use income from day one. No 2 year waiting period is required for conventional loans.
If you're cash flowing your DTI is probably much better than you think.