Any advice on a mortgage lender in Florida who will allow rents as part of the qualifying process?

[Ty Whitman]

Hello,

I am interested in investing in the Jacksonville or Daytona Beach areas.  This is my first post on this site, although I have listened to all the podcasts and been cruising the site for a while.  I am a new investor with no prior landlording experience, looking to get pre-approved for a 250K purchase price, with 25% down.  I have an 800 credit score, excellent employment income, and excellent cash reserves.  I could purchase the property cash, but I would prefer to leverage my money with these low interest rates. 

The problem I am having is that most lenders will not allow any income from rents for the first two years, due the fact that I have not been a prior landlord.  Without allowing for rents, and at that purchase price, my debt to income ratio (due to 1800 / mo. alimony payments which will stop in three years) is 48%. 

I had met a person, who I now consider a friend, in Portland who would have been able to pre-approve me using rents, but the Portland market doesn't cash flow and he cannot lend out of state.  I'm going to ask a realtor I have been in contact with, but I figured I would ask here as well and get your advice.

Any advice would be apprciated would help. 

Thanks,

Ty

[Shaun Weekes]

Hello Ty,

It's good that you found someone.  The 2 year rule is an overlay with most lenders as Fannie Mae doesn't care if you have landlord experience.  Now if you were using Freddie Mac as the investor it would be a different story as they require 2 years of landlord experience.  As long as you get an Approve Eligible on DU ( Desktop Underwriter ) you should be golden and good to go. 

Good luck and take care.