I need a loan! A debt to income question...

[Stacy Kiley]

Hey BP community,

I'd like to get at least 1 mortgage for my 2 SF homes in Cleveland so I can buy more property. They are currently held free and cashflow at about 1500 per month. One is worth about 65k, the other 100k. The rest of my income (about 45k adjusted gross) comes from self employment. I carry no debts other than the Heloc on my primary. I have good credit.

How do lenders decide how much they will lend? Are income sources like capital gains excluded from qualifying for a mortgage? Any advice or lender referrals would be greatly appreciated! Thanks in advance.

[Chris Mason]

Originally posted by @Stacy Kiley:

Thank you @Chris Mason and @Caleb Heimsoth for all your help! 

One last question that pertains is how a HELOC is figured into the DTI formula... for qualifying purposes, do lenders use the maximum payment and interest rate (ARM) that would be possible on the loan to qualify a borrower?

 Some lenders do, others will use the payment associated with the amount drawn as of closing on the new loan.