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Updated over 2 years ago,
Do "2nd Homes" affect Debt-to-income ratio?
Hello BP community,
Here is my scenario:
1. I purchase a condo as a "second home" with a 10% downpayment
2. live in it for 2 weeks out of the year (as stated by law where I live)
3. Then rent it as a STR for the remainder of the year and turn a solid profit of 10k.
When I apply for a new loan for my next condo, does the income from the first condo (10k stated above) factor in to my Debt to income ratio? Or, because I purchased it as a "second home" and not an investment property, are those profits, on paper, null and void?
Thanks!