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Updated about 3 years ago,

User Stats

66
Posts
55
Votes
Reed Meyer
  • Investor
  • Chicago, Il
55
Votes |
66
Posts

Debt-to-Income ratio on FHA Loan

Reed Meyer
  • Investor
  • Chicago, Il
Posted

I currently own one property through an FHA loan and I am looking to acquire a second one. I found a deal that would be cash flowing from day one. I would move into this new property and fully rent out my current 3-unit building. However, FHA rules require that I have a certain debt-to-income ratio in order to qualify for another FHA loan. Since my current property has not been recorded in my tax returns yet my total debt amount is included in this calculation but none of my income is. This feels ridiculous.

Does anyone know of any strategies/suggestions for getting around this semantic complexity? If the rental income from my current building were included in the calculation i would easily be able to pass this test and could purchase the property today. It feels ridiculous that it is not. Any ideas help!

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