Mortgage advice help

4 Replies

Good Morning BP!

I am wondering if anyone out there had insight on lenders in Houston/Galveston TX area. My fiancé and I are relocating from New Jersey and are trying to secure a loan. Long story short we wasted 8 weeks trying to deal with a lender just to basically be put on the back burner time and time again.

My fiancé is starting his construction business in Texas and I am the only one showing income for the time being. I am trying to purchase a duplex for 155k both units rented. I would like to secure an FHA loan and occupy one of the units. Because of my debt to income ratio we are at max capacity and I would need to find a job in Texas with the same income as I have now. This is seemingly tough especially on a time constraint. Is there any lender that still uses the income from an already rented property for income ? This would alleviate much of my debt to income ratio. Also we are looking to put about 10-15% down so that should bring the price of the house down a bit AND it's been on the market for quitesome time like a year so I was thinking we can talk the price down a bit. Any suggestions??

Thank you!

On an FHA loan, 70% of the rental income from units 2, e and 4 would count as qualifying income.

@Chris Ortega yes you should be able to use the rental income on the subject property minus the unit you are moving in. If your lender is telling you that you can't use the income I would find a new lender. It is probably not passing the "Net Self Sufficiency Test" for FHA. To avoid this FHA rule I would try and go conventional.

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