Owning a rental and effect on second home purchase

[SD Realtor]

I was not affected when I was in escrow last month. I think it all depends on your cash flow and possibly a few other factors. HLS would be a good person to ask on this one Trojan. Shoot me email if you want details on how mine worked.

[(former)FormerSanDiegan]

Typically 75% of the rental income counts towards your income. 100% of the PITI payments count towards debt, when computing debt ratios.
Also, for conforming there is now a rule that you need to have 30% equity in your existing property (be it a rental or primary residence) before yuo can qualify for the next property.

Again, these are conforming rules. If you are getting a non-conforming loan some, none or all these may still apply.

[(former)FormerSanDiegan]

Typically 75% of the rental income counts towards your income. 100% of the PITI payments count towards debt, when computing debt ratios.
Also, for conforming there is now a rule that you need to have 30% equity in your existing property (be it a rental or primary residence) before yuo can qualify for the next property.

Again, these are conforming rules. If you are getting a non-conforming loan some, none or all these may still apply.

[(former)FormerSanDiegan]

Typically 75% of the rental income counts towards your income. 100% of the PITI payments count towards debt, when computing debt ratios.
Also, for conforming there is now a rule that you need to have 30% equity in your existing property (be it a rental or primary residence) before yuo can qualify for the next property.

Again, these are conforming rules. If you are getting a non-conforming loan some, none or all these may still apply.

[(former)FormerSanDiegan]

Typically 75% of the rental income counts towards your income. 100% of the PITI payments count towards debt, when computing debt ratios.
Also, for conforming there is now a rule that you need to have 30% equity in your existing property (be it a rental or primary residence) before yuo can qualify for the next property.

Again, these are conforming rules. If you are getting a non-conforming loan some, none or all these may still apply.

[(former)FormerSanDiegan]

Typically 75% of the rental income counts towards your income. 100% of the PITI payments count towards debt, when computing debt ratios.
Also, for conforming there is now a rule that you need to have 30% equity in your existing property (be it a rental or primary residence) before yuo can qualify for the next property.

Again, these are conforming rules. If you are getting a non-conforming loan some, none or all these may still apply.

[cr]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

[cr]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

[cr]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

[cr]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

[cr]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

[Ren]

That wouldn’t make sense, because then no one could own more than a few rental properties without a massive income, or without being wealthy already and paying cash for them all. And leveraging is kind of the point – 20% down on multiple properties will get you a lot better return than paying cash for one.

[Ren]

That wouldn’t make sense, because then no one could own more than a few rental properties without a massive income, or without being wealthy already and paying cash for them all. And leveraging is kind of the point – 20% down on multiple properties will get you a lot better return than paying cash for one.

[Ren]

That wouldn’t make sense, because then no one could own more than a few rental properties without a massive income, or without being wealthy already and paying cash for them all. And leveraging is kind of the point – 20% down on multiple properties will get you a lot better return than paying cash for one.

[Ren]

That wouldn’t make sense, because then no one could own more than a few rental properties without a massive income, or without being wealthy already and paying cash for them all. And leveraging is kind of the point – 20% down on multiple properties will get you a lot better return than paying cash for one.

[Author]

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