We are being told that we must rent out the other house for just at the morgage price and no more is this true or are they trying to get over on us about the extra rent we could make on the rental price of the house?
2007-10-09 14:51:41 · 3 answers · asked by .phantom47 1 in Business & Finance ➔ Renting & Real Estate
Not necessarily I have done many loans where the client doesn't have any rental income on thier current home they are selling or even if they are keeping it as a rental. If they are asking for a certain amout of money for rent it might be to qualify but if you rent if for more you are fine it shouldn't be a problem. If they say you can only rent for so much something is funny might want to questions why. Let me know if you need any help. scott@amerifirst.com
2007-10-09 15:09:38 · answer #1 · answered by fsbogonewild 1 · 0⤊ 0⤋
When calculating DTI (debt to income ratio) most lenders will allow 75% of your rental income as personal income.
For example: you have a rental and you receive $1,000 per month in rent for it. You can then add $750 per month to your personal income for DTI calculations.
As the others have answered the lender probably has it calculated as such, that if you have the property rented for the same amount as the mortgage payment you will debt ratio. Any rent above the mortgage payment is just extar gravy. You can rent it out for as much as you want.
2007-10-10 01:38:20 · answer #2 · answered by RealEstateGuy 2 · 0⤊ 0⤋
They are most likely telling you that you must rent it out for AT LEAST an amount equal to the mortgage payment on the condo. More would be better, of course, both for them AND for you!
2007-10-09 22:11:25 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋