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Updated almost 4 years ago on . Most recent reply

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15
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6
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Benjamin Branson
  • Monterey, CA
6
Votes |
15
Posts

Calculating debt to income?

Benjamin Branson
  • Monterey, CA
Posted

So I own two rental properties and cash flow about $600 a month between the two. Both are long distance. I am in the military and know that I will be moving to a new duty station next year. I am wanting to buy another long distance property (3rd property) but I also want to house hack when I get orders to move (4th home). My biggest concern is that when I move I won't be able to get a loan for a fourth house because my debt to income might get too high. Should I be concerned that I won't be able to get a 4th loan? How do I know when banks will no longer give my a loan because of my debt to income? 

Most Popular Reply

User Stats

15
Posts
6
Votes
Benjamin Branson
  • Monterey, CA
6
Votes |
15
Posts
Benjamin Branson
  • Monterey, CA
Replied

Wanted to give all of you an update as to what I found out since you were gracious enough to provide advice. I got in contact with a lender where I am going (Virginia) and looks like I can use my VA loan again with orders on a house in Virginia and would provide me more than enough money to get a house moving. The VA also does not need as much rental history as a conventional lender expects (they just need leases to show that the income from rent covers the mortgage). So the plan will be to go ahead and buy a third rental property out of state and then use the rest of the VA loan moving to Virginia. Thank you all for the advice!! Debt to income still applies but is very different with calculating the VA entitlement and gracious with rental property owners. Good to know!!

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