Posted on: 26th Sep, 2010 02:25 pm
I bought some rental property in April 2009 and had a lease agreement at that time. I am interested in refi'ing my personal property and am concerned about how rental income will factor into my DTI calculations.
Do I need to have the property on my tax return for 2 years or do I need to show 2 full years of rent income (for my case, 3 tax years) to include the rental income in my DTI for my refi?
Also, I've seen various ways to calculate DTIs with rental property (rental income & mortgage). What is the proper way to calculate DTI when you have rental income & rental mortgage?
Do I need to have the property on my tax return for 2 years or do I need to show 2 full years of rent income (for my case, 3 tax years) to include the rental income in my DTI for my refi?
Also, I've seen various ways to calculate DTIs with rental property (rental income & mortgage). What is the proper way to calculate DTI when you have rental income & rental mortgage?