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Updated over 8 years ago on . Most recent reply

User Stats

172
Posts
66
Votes
Gloria Mirza
  • Real Estate Agent
  • San Jose, CA
66
Votes |
172
Posts

converting primary to rental and purchasing new primary - DTI?

Gloria Mirza
  • Real Estate Agent
  • San Jose, CA
Posted

I'm going to purchase a new primary residence in Feb/March of next year.  I know that my income will not qualify me alone.  Will I be able to count 75% of expected rental income for my old primary when calculating income?  Obviously I am living in my current primary and don't have any rental history for that house, but will rent it out after I close on the new primary.  

As background, I borrowed 75% of the home value in a conventional loan, 15% in a home equity loan, and have about a 90LTV.  I have 4 years of rental experience with other rentals that I own.   

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