Posted by James Strange on January 05, 2003 at 23:54:00:
You have a good FICO.
You have a down.
Your debt to income is what may be the problem. Her is how rent will count for against you. Rent X .75 minus payment. If is positive that is income. If it is negative that will be an expense.
Now if your current DTI is 31% they will want to know what it will be after you have the new loan.
If the rental does not have a renter you will have to pay the payment out of your current income. So now you have all of your bills plus the new payment. What will your DTI be then?
I need advice on what lenders qualifications and or guidelines are when getting financing on a single family home for a rental property?I have 10% for a down,credit score of 670 and have had a single family home for rent for 3 years, which shows a loss on paper annualy.Do lenders require a tennant in the house before they will finance me.In other words how nervous do they get knowing it could take several weeks to months to move a tennant into a newly fnanced rental house?Debt to income ratio is 31%.