2 Questions about DTI. Rental Income. Threshold for future.

[Ernesto Hernandez]

Hey everyone, I have a couple of questions as it relates to DTI.

FIrst, I personally rent about 2 hours away from a property my mom lives in and pays the mortgage payment on though I don't technically claim it as a rental property (No Schedule E). How will this impact my DTI when applying for a loan on a true OOS income property?

Secondly, at what threshold is DTI a concern when planning for a future home purchase for myself and potential wife to be? I assume being married will help since she has no mortgages in her name and will not likely have one? If i'm Budgeting for a 550-600K property, what kind of DTI "cushion" should I leave myself?

TIA! 

[Andrew Kerr]

@Ernesto Hernandez - the property you own and have a mortgage on that your mom lives in will count in your DTI. This could cause a big problem depending on your income level.

I haven't been in banking in years. But I recall Fannie Mae backed loans having a base DTI of 36% and it can go up to 45% if you meet credit score and reserve requirements. If you and the wife combined make $10,000 a month, figure your total obligations shouldn't top $4,500 a month. Hope this helps.