Using rooms for rent in qualifying income - Possible?
Is there any way to count a room in a 4/2 house towards DTI on a future purchase? I'm sure I already know the answer to this question and I'm going to owner occupy one room and rent 3 out LTR. My DTI ratio is high based on my recent discussions with a mortgage lender for a refinance on my duplex under a FHA loan that I lived in for 2 years and has been converted to a STR in both units. Unfortunately, I can only fix one year to show income - this one. I now have a $19k loss from 2018 taxes reported. I can fix this year and show actual income to assist in my qualifying. I am trying to not go commercial. The DSCR would work for this property contingent upon inspection and appraisal...old house so I could put 25% down and go commercial. Are there any other hints for this process other than speaking to local banks and credit unions? I'm working on that one but also trying to educate myself for future. I had no idea deductions on taxes would hamper me so much. I thought I was doing a good thing with write-offs. Excellent credit so that's not an issue at all. It's in the high 700s.