Updated over 7 years ago on . Most recent reply
Qualifying for SFR loans
Hello, everybody. I purchased a single family home for $46k here in the Green Bay, WI area a little over a year ago expecting to live there myself. But, I changed my mind and decided to rent it out for $650/mo, which has been going well for the last 8 months.
Now, I am hoping that I will somehow be able to qualify for at least 2 more properties like this.
Using a calculator like this one...
https://www.realtor.com/mortgage/tools/affordabili...
...it's not looking very promising.
My independent contractor income, without the rental income I'm receiving(less than 2 years, so I'm guessing this won't count for anything), has only been showing about $16,500/yr net. This is the income that I used to qualify for the first loan. If the lender will consider 75% of the potential rental income on the new property, I figure that will raise my total income to about $22k/yr.
For debt, total payment for the current loan is $335/mo. The lot rent at my mobile home is $250/mo, which I pay half of, so another $125/mo for a total debt of $460/mo. No credit card balances or other loans.
And, I can easily put 20% down on a $50k house, so $10k down payment.
With these numbers plugged in it looks like I might barely qualify for one more property at a fairly aggressive DTI. Am I figuring all of this correctly? Anything else I'm not considering?