Rental Property Investor · Dallas, TX · Member since 2018 · 5 posts · 0 votes
Hello, I am buying my next property by the end of this year 2019. We don't have much income around (95k after tax).
My question is in order to obtain a high loan amount aside from have a good debt to income ratio and credit score...
Am I able to add future rental income from house hacking the house I'm applying for to obtain a high loan amount. We're trying to get a duplex however I'm afraid we don't make enough income to obtain at least 400-500k for a duplex here in Dallas, Texas. If we can't get a duplex we will just house hack a Single family home. I've asked several agents and lenders so far and they have not been able to get me a straight answer. Thanks in advance for all the support.
Investor · Charleston, SC · Member since 2018 · 42 posts · 24 votes
7y
Hey Reggie,
I can not give you a direct answer I can only speak from what limited experience I have. You can get pre-approved for a loan. If you are able to sit down with the loan officer and be transparent about your situation they may work with you. Worst they can do is say no. Also, I have about a 670 credit score and make only 44K and was approved for a 209.5K VA loan. Hope it helps.
Investor · Charleston, SC · Member since 2018 · 42 posts · 24 votes
7y
Hey Reggie,
I can not give you a direct answer I can only speak from what limited experience I have. You can get pre-approved for a loan. If you are able to sit down with the loan officer and be transparent about your situation they may work with you. Worst they can do is say no. Also, I have about a 670 credit score and make only 44K and was approved for a 209.5K VA loan. Hope it helps.
Rental Property Investor · Levittown, PA · Member since 2016 · 109 posts · 97 votes
7y
@Reggie Laxamana I think your best bet is to continue reaching out to investor friendly lenders in your area. I agree with @Matthew Chalfant that you should be as transparent as possible with making your intentions known from the start.
I am able to use a percentage of my rental income (80%) to get approved for additional mortgages. I am required to provide a signed lease agreement prior to closing to satisfy underwriting.
Rental Property Investor · Dallas, TX · Member since 2018 · 5 posts · 0 votes
7y
@Matthew Chalfant
Thanks for the information. How much did you put down? 20% as a down payment? I know that the down payment can affect how much you can get approved for as well and lower interest.
Investor · Charleston, SC · Member since 2018 · 42 posts · 24 votes
7y
I used a VA Loan, so I was not required to put any money down. Down payment does affect what a lender will approve. If you pay more they know you present a lower risk.
We did an FHA 203(K) on a four-plex (owner occupy 1 unit and rent the other 3) and the mortgage company did give us some income credit for the 4 units we would be renting, at the time.