Ways Around DTI Issues, Rental before Primary Residence

[Ashley Clements]

Hello BP, I am coming up with a little dilemma and I am hoping some of you may have some suggestions. I have been offered a private loan to purchase a rental that cannot get traditional financing because of a timeshare issue with the HOA. I would love to take this opportunity. However, I am currently renting myself and hope to buy next year. Even though the private loan won't be on my credit report, a loan is a loan and my traditional lender would be aware of me making payments to my private lender. I am concerned that if I do this now it would affect my DTI ratio enough that I wouldn't qualify for a home that fits my family's needs. Even if it's rented how long would I need to have a tenant for that to be considered "income".

Does anyone know a way around the possible DTI issues? Obvious answers or creative suggestions welcome. I feel like the simple answer would to wait until I secure my primary residence but I wanted to first inquire with all of you in case there is another option I didn't consider.