-Annual income is only around $25k, might be even less after deductions.
-Around 5K student loan debt, no payments due until 6 months after I graduate.
-Have been working with my current employer for a year only, but have always been employed since I turned 18.
I am aware that a lender may consider 75% of projected rental income when making the loan. Will they apply that number directly to my mortgage payment for qualification purposes or will it be applied to some type of debt to income ratio?
And are my chances of getting a loan for a duplex for around 130-150k realistic without 2 years work experience or should I wait another year to start talking to banks?
@Zackary Mlynarczyk The bank I work with will count rent to offset my DTI if I have leases to show. Some banks will want to see the income in your tax return. You should talk to a bank or mortgage company. Get preapproved so you can see what you qualify for. If you don't qualify find out why, and you'll then know what you have to work on or change. Good luck!
@Zackary Mlynarczyk Your chances are good if you plan to use it as your primary residence. It would be great if you increased your income. If you are working 40 hours per week and make $25,000, then you should be looking for a better job or a side hustle. If you worked 80 hours per week, you would literally double your income. 75% of the rent of the other side of the duplex will be used toward your debt to income ratio. The person you should ask is your local or regional bank. They will tell you the answer to your questions. I recommend talking to at least two different banks before doing the loan. If you are disapproved, ask them what you need to do to qualify. They should tell you exactly what to do. They want to loan you the money.
As mentioned you would be best trying to get pre-approved and see what you can qualify up to. You only need a 2 year work history. For FHA the 75% of potential rental income will count towards your DTI's. Worst case, you don't qualify for as high or a loan amount as you are hoping for.