How do ”shared loans" effect debt-to-income ratio?

6 Replies

My wife and I share a mortgage for our primary home. We both pay half .

How does our shared mortgage effect my individual debt-to-income ratio?

Do lenders take into account that I'm paying half of the loan amount?

As far as I know they do not.  If you mortgage is 100k lenders look at you both for have 100k loan.  At the end of the day lender doesn't know if you pay 100% half or none so they assume loan is fully yours.  

Hello Aram,

That would be a NO. Lenders will take the whole payment when calculating DTI. If your DTI is high, you may want to consider a asset based lender when acquiring investment real estate.

@Bob Green Thank you fo thar suggestion. What are some other options, Do you think refinancing my current home mortgage and putting it under my wife’s name would be a good idea? I wonder, how People get up to 10 loans without the debt-to-income ratio being an issue?
Originally posted by @Aram V. :
@Bob Green

Thank you fo thar suggestion. What are some other options, Do you think refinancing my current home mortgage and putting it under my wife’s name would be a good idea?

I wonder, how People get up to 10 loans without the debt-to-income ratio being an issue?

 Hi Aram,

Others are correct. Some nuance:

- Yup you could refi it into just one spouse's name. Big con is that rates are up.

- If Spouse A can prove that Spouse B has paid 100% of the mortgage on-time for 12 months from purely segregated accounts (NO deposits from Spouse A into B's account), then Spouse A can have the mortgage excluded from DTI. Big con is you have to wait a year.

I wonder, how People get up to 10 loans without the debt-to-income ratio being an issue?

Go to your local REIA, ask who is doing their loans. It'll be someone that can/does count rental income aggressively to make the math work. TLDR is that if the math is done right, and you're buying cashflow positive real estate, your DTI should actually improve over time. All my 5% and 15% DTI people have 7 or 9 properties.

@Aram V. Our primary house has only me on mortgage yet when getting investment property on my wife’s name, lender considered her responsible for 100% of Insurance and property tax (because title is in our joint name).