All Forum Posts by: Michael Osborne

Thanks for the replies, my post was kind of rambling but the main concern for me is DTI. Would not be an issue counting the rental income.

I am interested in purchasing a vacation rental in the near future. When qualifing for the mortgage is the historic rental income counted towards qualifying for the mortgage? In this scenario the historic annual tent is $50k. The mortgage, insurance, tax, and rental management would be about $40k a year. Probably not the best investment return so not really concerned with that just curious how qualify

Julee and Zack, thanks so much for the additional information. Sounds like since these rentals have been reported on my 2018 & 2019 the 75% rule would not apply and instead the add back method Julee explained does. So with that, I should be at a profit for income purposes. Thanks

I currently have no debt except 2 mortgages that are on rental properties and plan to purchase a new primary residence soon. The mortgages on the rentals (PITI including HOA fees) are $4,451 monthly and monthly rent is $5,200. From what I have seen mortgage companies typically only count 75% of rental income as income, so that brings the income down to $3,900.

How does this look for DTI calculations?

Are the rentals looked at as a group, so in this instance a loss/debt of $541 ($4,451-$3,900 monthly), so DTI is calculated as ($541 loss + new primary residence expenses) divided by (rental income plus W2 income).

Or is DTI calculated as ($4,451 in rental expenses + new primary residence expenses) divided by ($3,900 in rental income plus W2 income)?

Has anyone obtained a TSP loan under the new COVID rules? The rules seems extremely restrictive for most federal workers, since they have not been furloughed. I am thinking I may qualify under this criteria "You are experiencing adverse financial consequences as a result of being quarantined, being furloughed or laid off or having work hours reduced due to such virus or disease" since I have no longer been working overtime. Does anyone know what proof TSP requires for loans under the new rules?

I got an email today from the SBA that had me create an account. Once logged in I am authorized a loan up to $4,700. There is no mention of any portion of this being a grant. I filed as a landlord, husband/wife, so expected the grant portion to be $2k. Not sure how I should proceed....

I have an inquiry from 4/13 but have not received anything. Does this mean the accounts do not match or there is some issue? Just husband/wife landlords so figured we qualified for $2k

For landlords that have received any funds, did you enter a loss amount? I have not received anything and put 0 as the loss amount bc at that time there had not been a loss.

I applied as well, not really sure of landlords qualify or not but figured it doesn't hurt to apply.

I may be purchasing a new primary residence with my remaining VA loan entitlement. I just received my COE and it shows the first property (now a rental) purchased with a VA loan is using $90,083 of my entitlement. I live in a county with a $765,600 limit.

The new primary residence is $630k. How do I determine what amount of a down payment would be required in order to use the VA loan. I know 25% of the amount over your VA guaranty must be paid, but how do I determine what that amount is? I had planned to put 10% down in order to lower the VA funding fee, but not sure if that is all that I would need to put down.