Owner occupant without enough equity to secure financing to move.

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Hi everyone,

I'm new here so forgive me if I am asking a question that I can find the answer to easily.

I am an owner occupant in a hot rental area of Philadelphia. I want to move on to another house and convert my current house to a college rental. Rent in Manayunk is pretty much guaranteed due to the number of college students, young families, young professionals, and an A+ grade school rating.

My issue is, I bought my house a year ago only putting 8% down. When looking for a loan I am told that I must have 30% equity in my current home in order to count rental income towards my debt to income ratio.

I am confident that my current house will rent for more than the mortgage so I am not afraid of moving out and buying another home. I just need the financing. My real debt to income if you count renting out my house would be awesome.

Am i being too ambitious?

Are there creative ways to get around this DTI issue?

Thanks for any reply or direction to another thread!

-Matt