Debt-to-income ratios

[Nicole B.]

Hello all,

First I would like say hi as I am new to this forum!

I am extremely new to real estate investing and would like some help. I want to purchase an investment property but currently own my home so my debt-to-income ratio is around 20%. If I want to buy an investment property while still owning my home, it will raise my debt-to-income ratio much higher and I am worried that I may not be approved for a loan. For the new rental, I would plan on putting 20% down but I am thinking the ratio would go up to 28% (maybe more) front and back end. So how will I continue my future in investing if I am already almost maxed out with my main home and my potential rental purchase? Obviously, I don't want to stop at just one rental home.

So, my main question is, do banks have different requirements when the property is purchased for investment purposes? I do know that rental income can be added to gross income every month, but that takes about 2 years for them to actually count that as income. And it may still be not enough to raise my debt-to-income ratio. I also know that I can refinance and take out a HELOC on my main home, but I still worry it won't be enough.

Thanks in advance!