Posted on: 09th Jan, 2010 10:07 am
Our loan has gone to underwriting and we noticed on the HUD our rental income is not included and it just shows the loss we claimed on our taxes because we did a lot of repairs but we get more than enough to cover the mortgages from the rent we get and we won't be claiming a loss for 2009. I am concerned that this is ffecting our DTI ratio. Shouldn't our rental income be included when determing the DTI?
Rental income, On an FHA loan, 85% of the income is used. On a conventional loan, 75% of the income is used. Depending on what the mortgage payment is on that property, it will either have a positive or negative impact.
Hey thanks for responding so quickly! It's an FHA loan...and I don't see that they used any of the rental income anywhere on the HUD, shouldn't it be?
It would be on the 3rd page of your 1003 (uniform residential loan application) under "schedule of real estate owned".
Have you communicated this to your current loan officer?
It's blank under the Gross Rental Income column and under the Net Income column it's showing negative numbers for all the mortgages (the amt or our mortgages). Wasn't able to reach our loan officer yesterday or today. Usually she is easy to contact....