Confused about how projected rental income for mortgage applicati

[Severino Cuison]

I am planning to sell my house located in Stockton, CA and buy 2-3 single family homes in the Phoenix, AZ area to have better cash flow. I currently rent my house by the rooms, and I have been successfully doing so in the past two years and I want to continue to do the same business model on my next rental properties. I can do a conventional loan for two single family houses with my full-time job, but my wish is to buy three. I will have 20% down payment for three single family homes using my current house proceed once it is sold. Buying three, however, will stretch my DTI. I plan to buy brand new houses; their prices are not much different from old houses plus I get the advantage of not dealing with house repair/maintenance with an old house. When I apply for a mortgage, can I also use projected income that I may get from a new house without rental history? What about from a house that still to be built by a builder? Thanks for the input! I really appreciate it.

[Chris Mason]

Originally posted by @Severino Cuison:

Thank you @Janea Crum and @Chris Mason for the input. So does the requirement depend on what kind of loan you are getting? Or will it differ if you are applying through big banks versus local/small credit unions? I wonder if there is a formal guideline that is being followed. Thanks again for the information!

 Google search "mortgage overlays," post back if that does not answer the question.