Debt to Income Ratio: When does Rental Income Count? And Wages vs.Commission W2 Job

[Theo Hicks]

I have scoured the BP blog and internet and have not been able to find a clear answer to a few questions I have regarding Debt to Income ratio, so what better place to ask than here! So here it goes!

1) I have had a rental property for 3 months. Starting June 1st, I will be bringing in $2850-3000 a month in rental income and the mortgage, insurance, and taxes are $1200. If I were to apply for a conventional mortgage June 2nd, would that $1200 be an expense or would I be able to claim the income? Or will it vary lender to lender? I have heard some lenders require 2 years of rental history while others do not care!

2) I have a base + commission (paid out yearly) W2 job where my commission is MUCH higher than my base salary. When applying for a conventional mortgage, will I only be able to claim my monthly base salary or can I claim my commission as well?

Hope this isn't a newbie question and I appreciate the help!!!