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?

Thanks,

MB

What did you find out in regards to this? I am currently in a similar scenario! Thank you 

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

@Stefan Sorensen

A DSCR loan would be the way to go rather than pay additional tax and go through the hassle of amending two year's of tax returns.

Stephanie

Originally posted by @Johnny Quilenderino :

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

Originally posted by @Stephanie P. :

@Stefan Sorensen

A DSCR loan would be the way to go rather than pay additional tax and go through the hassle of amending two year's of tax returns.

Stephanie

Thank you for this! I am going to be doing some more research on this option.

@Stefan Sorensen

That is why I would talk to a local bank.

They can be less restrictive. One year or commercial loan ... Lots of opportunities