Would buying a STM impact my ability to get a primary residence?

[Patricia Watson]

My husband and I are thinking of purchasing a STM. We currently own a primary residence, but we plan to sell it and buy a bigger home in a couple of years. I'm concerned that buying a STM would impact our credit and DTI, and thus result in a higher interest rate for our future primary residence. What are your thoughts?

[John Underwood]

It definately could effect that.

If you have the STR for a year or two you should be able to count about 75% of the income so it would hurt you too bad.

If you are planning on buying a new primary house within 12 months of buying the STR then I would buy your new primary residence first.