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Updated about 8 years ago,
converting primary to rental and purchasing new primary - DTI?
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.