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Updated almost 9 years ago,
Fannie DTI ratio with new rental income
Quick question regarding DTI for a Fannie loan.
As I understand that new rental income (less then 2 years) is calculated as:
Gross rent * 75% - DITI = income added
What I don't know is whether or not the DITI still counts as a liability.
For example if DITI is 500 and rent is 1000, that nets 250 of income based on the above calculation. Does the $500 still count as a liability or is it completely wiped out?
Hope thatquestion makes sense. Thank you!