I'm looking to purchase a new home and turn my current home into a rental. My current mortgage is over two years old for those wondering. To offset my current DTI I need to find a lender who will consider future rental income on my current primary residence. It will also be very helpful to consider bonus income from my employer. I show no bonus income for 2018 and will show a very large bonus for 2019.
I currently show about 40% rental income of what I could ask after I move. The property has a garage apartment that is currently rented and shown on tax return for 2018 and soon 2019.
I have spoken with a few lenders and have heard I need a lease signed on my current residence to consider future income and have heard I can’t use 2019 bonus income because I had no bonus 2018.
I’m hoping someone here may know of a flexible lender they can recommend. Any other suggestions are welcomed and appreciated as well.
I think worst case scenario I can move into a rental to get my current place rented out.
Thanks for your reply @Chris Mason . It looks like it will be easiest to move to a short term rental to get my current place rented out.
As for the bonus; last year I chose to be compensated differently for tax purposes (regrettably). This year I have opted to receive a large bonus (it’s been received). My employer has treated me fairly. They haven’t reneged on any promises. Restructuring to a higher salary is something I have considered in the past but would almost certainly result in lower overall compensation for my position so I won’t be going that route.
I saw somewhere that bonus income is generally averaged for the prior two years when being considered for lending. I didn’t know if I could simply average this years bonus with last years bonus of $0.