Your biggest challenge is going to be qualifying for a mortgage because of your income.

My understanding is that the underwriting is based on the rental income only from a DSCR perspective, and the terms are pretty decent for private money (assuming you meet certain qualifying parameters such as credit, LTV, etc).

If I pre-qualify someone when their rate is 3.875% and then the market reacts and drives rates up to the high 4's before it settles down.

Something else you might want to look into are the income limits here (in some counties it is a bit higher than most people think) for qualifying for support/programs.

Non-occupying Co-borrower - A non-occupying co-borrower on an existing FHA-insured mortgage may qualify for an FHA-insured mortgage on a new property to be their own primary residence.

You have a qualified opinion, the issues clearly in front of you, and you know your goals - - you have "a self-evident truth" right in front of you :smile: and best wishes.

This all assumes that this is a conventional residential mortgage and that you do not have problems qualify for a mortgage.

Under a county program, I qualify for an income-based first time home buyer loan with these terms:The loan requires 3% down payment  No mortgage insurance  The maximum loan amount is $417,000 Provides first time buyers with up to 25 percent of the purchase price to assist with the down payment and closing costs.When it comes to resale values in these loans, there is a set price value when selling: "The Set Price is calculated as: original price paid, plus annual appreciation based on increases in the Area Median Income (average 2-3% annual appreciation), plus the cost of capital improvements made to the property.Is anyone familiar with these types of loans? 

We're pre qualified for up to $350,000. 

@Bill Exeter I looked it up and you're right, that strategy would only qualify for a partial exclusion due to the proration you mentioned.