Rental Property Investor · Houston, TX · Member since 2017 · 144 posts · 42 votes
Hey BP family,
Wife and I are renting our upstairs bedrooms. we claim the rents on our taxes, we have a real lease, BG & credit checks, ect on tenants. we've been doing this for about 15 months. Can we, After two years of tax returns, Get our Debt to Income adjusted to account for the rental income? If so we would like to get another Mortgage, move into the new home and start the cycle over again. this SFH is our homestead (Not in an LLC)
PITI - 1780/M
Purchase price - $184,000
total rents - 1200/M
Loan - Conventional with 3% Down (not much equity yet)
any thoughts? what can we do now to prepare for this?
Real Estate Agent · Slidell, LA · Member since 2017 · 207 posts · 267 votes
5y
Call a bank, normally they will accept 70 percent of gross rents. Especially if you explain the situation ie professional tenants, have ACTUAL leases and can show income for the two years with leases that match. Get a local bank involved, a big box bank (BofA and Well Fargo) might not say this fits their profile and tell you no, where a local bank and a local loan officer will appreciate the business and the creative way to pay your mortgage.
Call a bank, normally they will accept 70 percent of gross rents. Especially if you explain the situation ie professional tenants, have ACTUAL leases and can show income for the two years with leases that match. Get a local bank involved, a big box bank (BofA and Well Fargo) might not say this fits their profile and tell you no, where a local bank and a local loan officer will appreciate the business and the creative way to pay your mortgage.
Good luck. Johnny
Awesome, thank you for the reply. Is there anyway to get around the two year timeline? I am just trying to scale quicker. Thanks again