All Forum Posts by: Albert Young

Yeah I figured they assign the full liability. I dont agree with it necessarily, but I understand it. My question is what do they do with the income? To me if they are going to assign the full liability to my DTI then they should also assign the full rent roll to my income (or 75% of gross or whatever calculation they use). Did they do this in your case?

so if i create a partnership with my inlaws and we each own 50%, then the lender would only assign 50% of the monthly debt (as well as income) to my debt to income ratio?

thanks everyone for the insight.

Thanks. Yes I have three years history. My primary is a duplex. I understand why they would add the full payment to my debt calculation since I'm legally responsible. My quest was more about what percent of the income I get toward my income calculation. Seems like they are penalizing me for having a coborrower even though if I'm making the full debt payment I'm probably getting all the rental income too. I was curious if some underwriters would take that into account.

Thanks for the quick response

I recently purchased a triplex with my in laws. It is a shore property that we plan on renting two of the units seasonally and keeping one unit jointly for our own use over the summer. Both my wife and I as well as both my in-laws are on the loan and title. My question is around how my debt to income ratios will be calculated when i go to buy my next property soon. Since I am legally responsible for the full loan even if no one else pays, I assume under-writers add the full monthly mortgage payment to be debt. But they will use my tax returns to determine income (of which I'll only claim 50% since my wife and I file jointly and own 50% of the property).

So for example, lets say the annual debt payments equal 2500 monthly. Lets says the rental income is 3,000 monthly. So my debt side of debt-to-income will increase 2500 but my income will only go up 1500?

This seems unfair.