Debt to Income affecting ability to purchase

[Zakiyyah Potts]

The lender said that my Debt to income is too high and causing me not to qualify. I rent out my first home. I have a bank account to show that I receive rental income. But the lender is stating that he needs two years. After reading comments on the forum, it looks like my proof of payment to cover mortgage, taxes, insurance should be okay for first year. Should this be a issue?

[David Kelly]

Do you have a lease agreement that you are able to provide the lender?  Is this the subject property that you are trying to refinance, or are you purchasing/refinancing another property?

If you supply a signed lease agreement along with a form 1007 for 1 unit properties, or 1025 for 2-4 unit.  This should be enough to use 75% of your rental income to offset the payment.  As long as the rental income is approved based on the 1007 or 1025.

Reach out to me with any other quesitons.