Projected Income to qualify for SF purchase
Hey all, For clarification purposes: If someone is trying to qualify to purchase a single family to use as a rental, a lender will use 75% of the rent toward the monthly debt service?
For example if PITI on the property is $1500 and the market rent is $2000 that property's potential income should qualify (on a basic income level) by itself, correct?
Lenders I have worked with in the past have told me this is how they qualify the rental, a new lender I am looking to work with is giving me conflicting info, saying they only use 25% of the 1500.
Can any other lender friends provide further insight? Thanks...