When applying for a loan for a rental property/investment property...?

Asked by Ashley Merritt, Knoxville, TN Tue Apr 7, 2009

Does a bank solely base if off of your income/debt ratio? Even if you plan to rent it? Do they consider the rent $ you may bring in...or no since it may not come in?
We currently have a mortgage and would be getting an addtional mortgage for a rental property that is currently foreclosed/bank owned.

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2
Bob Evridge, , Knoxville, TN
Tue Apr 7, 2009
BEST ANSWER
Whenever a person is applying for a loan future or anticipated income is not taken into consideration. This applies to anticipated income from rental property, a bonus, scholarship, etc. Only current income and cash reserves, that can be documented, is considered.

Best Wishes,
Bob Evridge
Dream Facilitator

REALTOR®, Broker, e-PRO,GRI
Hop Bailey Co.
310 Forest Park Blvd
Knoxville, TN 37919
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0 votes
Sherry Wheel…, , Knoxville, TN
Tue Apr 7, 2009
Sorry, Ashley but they don't look at rent.
Web Reference:  http://swheeler.cbww.com
1 vote
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