My first two loans are killing my DTI

[Victor Velazquez]

I would really appreciate some advice; My wife and I are co-borrowers on two properties, our principal residence and my mom's home (neither of which provide rental income). We now want to buy our first investment property and I would like to apply for a loan individually to maximize our loan possibilities. Only issue is our first two loans put my individual DTI over 50%. My wife and I make about the same so she would have the same issue if she were to apply individually. I'm hesitant to refi to put these loans on one of us individually because they're at a good fixed rate at 3.75%. If we apply jointly for our rental properties that would cap us at 8 loans. I'm thinking that's our best option right now though. Did I shoot myself in the foot with these two loans? (For the record, these were done before I was introduced to BP forum).

[Chris Mason]

Originally posted by @Victor Velazquez:

Thanks Chris Mason !
Are you saying a lender should take into consideration the assumed rental income from the rental property I'm buying to calculate DTI? Thanks for your time!

Of course. Every REI friendly lender is familiar with that math (most lenders don't really know REI math -- it's not a requirement for our pre-licensing education or testing).

The offer didn't get accepted, but I ran a scenario past underwriting for a guy that lived (I am not joking... really) in a van down by the river (yup, that's really where he lived, this is not a Chris Farley joke), who was unemployed, buying a pair of fourplexes, and had it approved by underwriting once presented properly. 

The anticipated rental income was sufficient to qualify him.