How long before lenders count rent income towards DTI ratios?

[Matt F.]

How long does it generally take before lenders start counting your rental income ?

i recently purchased a new primary residence and rent my original home. how long do i need to be renting that original home for before lenders start letting that income count towards ratios like debit to income ?  Do they count this income at full value or do the discount it since its not guaranteed ? 

[Brie Schmidt]

Originally posted by @Matt F.:

How long does it generally take before lenders start counting your rental income ?

i recently purchased a new primary residence and rent my original home. how long do i need to be renting that original home for before lenders start letting that income count towards ratios like debit to income ?  Do they count this income at full value or do the discount it since its not guaranteed ? 

 It depends on who they are selling it to.  Some will make you wait two years and others can count it immediately (more common)  

For the first year they do 75% of monthly rents - PITI = monthly income or loss

After that they go off what you reported on your schedule E. Gross rents less expenses, add back in interest, insurance, taxes, depreciation (divide by 12) and then minus PITI