STR income count towards DTI if purchased using vacation home loan

Short-Term & Vacation Rental Discussions
3yFollow

STR income count towards DTI if purchased using vacation home loan

Brittany Stradling
Investor · Indianapolis, IN · Member since 2021 · 38 posts · 85 votes

My family and I are gearing up to purchase another primary residence in 2 years. Therefore, we want to ensure that we are prepared and there are no surprised. I feel like I've read somewhere that if you have a vacation home, you cannot count the income towards DTI? Is this true?


We currently have one cabin and one primary residence. 

I would be using a VA home loan if that matter.

0Reply
10 views

Most Popular Reply

Jason Wolohan
Member since 2018 · 19 posts · 10 votes
3y

You'll need to have the property long enough to show up on your taxes. Once it's on your Schedule E a loan officer will be able to use the income generated to offset the debts in your DTI calculation.

3Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Jason Wolohan
    Member since 2018 · 19 posts · 10 votes
    3y

    You'll need to have the property long enough to show up on your taxes. Once it's on your Schedule E a loan officer will be able to use the income generated to offset the debts in your DTI calculation.

    3Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y

    You should be able to use short term rental income to help you qualify. Especially if it's your goal in 2 years to buy another primary. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    2Reply
  • Brian Kantor
    Investor · Brooklyn, NY · Member since 2019 · 185 posts · 205 votes
    3y

    Every lender is different, but most will want to see at least 12 months of income, less expenses to qualify this as additive to your income.

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Brittany Stradling, everyone said it best! Most lenders will want at least a year of operations showing income to allow it.

    Lending requirements have tightened up over the last 12-18 months so you might see 24 months. Just call each lender on your list and find out what's what.

    1Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    You have to own it for 2 years!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free