Does lenders subtract paper rental losses from your W2 income?

[Sheng Wong]

Hi,

Aside from my primary residence property I have rental property that is generating profit before depreciation, but shows a loss after depreciation. Will that affect me negatively when i try to get another mortgage ?Will they  apply that loss to my ordinary income?

[Chris Mason]

Originally posted by @Sheng Wong:

Hi,

Aside from my primary residence property I have rental property that is generating profit before depreciation, but shows a loss after depreciation. Will that affect me negatively when i try to get another mortgage ?Will they  apply that loss to my ordinary income?

 Many lenders will "add back" the depreciation (among other things). Not all, or most. But many. It's a great question to ask when you're "dialing for dollars," you've got to qualify your prospects.