Typically when you are applying for another loan for a second property this property will effect your dept to income ratios. From experience they usually give you credit for 75% of the collected rent and compare that to your payment you make each month. If the payment exceeds your income it effects your ratios negatively, if %75 of rental income exceeds mortgage payment your in good shape and it should not effect you negatively when trying to get another loan. Usually the lender will request copies of leases to prove income.
I just completed my first deal and every thing went great! Now i’m ready to start on another deal. I was wondering if a lender looks at a rental property that is making positive cash flow the same as a property that doesn’t bring an income, such as a primary residence. Does this have to be proved to the lender?
Lenders will evaluate your debt to income ratios when considering additional loans.
If you go stated income, the rental leases may or may not be required by the lenders. - each lender is different.
A no doc loan can also work to your favor, however, rates are generally higher.
Joe
Olympic Funding