Rental Income Counting toward Debt to Income Ratio

[Irene Chen]

We are looking to get another mortgage to purchase an investment property.  One company told me that our debt to income ratio is to high (we have 2 investment mortgages) and said we would not be able to come rental income because it has never been filed in our tax return (we just started earlier this year).  I also heard that we need to have filed rental income on our tax return for up to 2 years.

I just spoke with another loan officer who said that he can count 75% of the rental income for each investment property and that our DTI is fine as long as we have the lease agreements. I wanted to get some feedback on which loan officer is correct under the Freddie Mac/Fannie Mae standards as I want to know before I go under contract and the loan falls through.