Comments on: How does rental property affect your income to debt ratio? http://www.ramsey-rentals.com/how-does-rental-property-affect-your-income-to-debt-ratio/ Mon, 03 May 2010 08:40:34 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Noneya http://www.ramsey-rentals.com/how-does-rental-property-affect-your-income-to-debt-ratio/comment-page-1/#comment-91 Noneya Mon, 25 Jan 2010 20:08:19 +0000 http://www.ramsey-rentals.com/how-does-rental-property-affect-your-income-to-debt-ratio/#comment-91 It depends on what kind of loan you are getting. If you plan to get a Fannie Mae or Freddie Mac loan then you will have to qualify with both mortgage payments but none of the rental income unless you have 25% equity in the property. You will also need to have 6 months worth of both mortgage payments in reserves/savings. Many people don't know that the guide lines were changed over a month ago because people were buying new homes and providing lease agreements for their current home. Once they closed on the new home their rental went straight into foreclosure. It depends on what kind of loan you are getting. If you plot to get a Fannie Mae or Freddie Mac loan then you will have to be eligible with both mortgage payments but none of the leasing income unless you have 25% equity in the property. You will also need to have 6 months worth of both mortgage payments in reserves/savings.
Many people don’t know that the guide lines were changed over a month ago because people were buying new homes and providing lease agreements for their current home. Once they closed on the new home their leasing went straight into foreclosure.

]]> By: loanmasterone http://www.ramsey-rentals.com/how-does-rental-property-affect-your-income-to-debt-ratio/comment-page-1/#comment-90 loanmasterone Mon, 25 Jan 2010 19:59:08 +0000 http://www.ramsey-rentals.com/how-does-rental-property-affect-your-income-to-debt-ratio/#comment-90 The mortgage you are paying on your current home will count against you as a debt on your credit report. It will have an affect on y our debt-to-income ratio. The rent you get from renting the house will count as income, however most lenders only count 75% of the rental as income. The other 25% is for incidentals and for potential vacancies that might occur. If you plan to use the rental as income then you should have a rental agreement of some sort as proof that you have a renter. I hope this has been of some use to you, good luck. "FIGHT ON" The mortgage you are paying on your current home will count against you as a debt on your credit report. It will have an change on y our debt-to-income ratio.

The rent you get from renting the house will count as income, but most lenders only count 75% of the leasing as income. The other 25% is for incidentals and for potential vacancies that might occur.

If you plot to use the leasing as income then you should have a leasing covenant of some sort as proof that you have a renter.

I hope this has been of some use to you, excellent luck.

“FIGHT ON”

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