Do Investment Properties Hurt Ability to Get Mortgage for a Home?

[Laith Khalil]

Hi everyone!  

I have the opportunity to buy and hold a good rental property right now.  However - I'm also planning to get a mortgage on my first home next year.  Will having a 30 year mortgage on that rental property, and having renters in the property, negatively affect my ability to get a mortgage for a primary residence in any way at all? 

Any info on this will be very helpful!  Thanks!

[Brie Schmidt]

@Laith Kareem The lender will take what you report on your taxes, add back in depreciation, mortgage interest, insurance and taxes and then take that monthly amount and minus your PITI payment. If it shows negative then they will take that out of your income, if it shows positive they will add that back to your income. If it isn't on your taxes yet they will generally use 75% of the rent minus the PITI.

I suggest talking with your lender about what your plan is and make sure when he funds the investment property it won't affect the funding of your personal one.