Applying 75% of rental income to debt to incomr

5 Replies

Hello,

If you buy you first rental property with a conventional loan can use the estimated rental income to use that 75% income to.use for the debt to income ratio ratio. Also I have never had landlord experience but I do my primary residence.

What if I have already my own primary residence, I read that would help if you didn't have landlord experience?

@Horacio Gutierrez For counting rental income toward debt to income ratio can vary by bank. I bought a multi family and using the leases the bank counted some portion of the income after factoring in the new mortgage payment and a bit for reserves toward my debt to income.

I am in the process of purchasing a second multi family through the same small bank which is where I have banked for 25 years and they are once again using a portion of the rents from the leases at the new building to calculate my new debt to income ratio.

This bank services their own loans and does not sell them. So they are pretty conservative.