but when working on refinances the debt to income ratio is not as simple as it sounds, as there are many factors that come into play.i.e. if you are W2 earner are you self employed ? the fact that you just got the property and have no income on your 1040's doesnt mean that you can't use that income. there are lenders that will allow you to use the income with i.e. rental aggreements, proof of rent.
If you have any questions i am more than happy to elavorate and help you out .
Platinum Home Financing
999 E Colorado Blvd
Pasadena, CA 91106
Direct 626.204.0030 ext 104
Now with regard to the rental income, you want to discuss that matter with your loan broker.
Do you think you need the rental income in order to qualify for the loan?
Each lender has their lending guidelines re. how high DTI should go, so when you call on some good mortgage pro, you should ask them for DTI on your 2nd investment property.
Until 2 years passed and you can show profit, not loss on the property you are renting out, this won't be used as income. This property (until 2 years of profit could be demonstrated on your tax returns) can cause a loss, due to taxes, insurance and a mortgage (if there is a mortgage on it).
I suggest to speak to a couple of good mortgage pros who understand underwriting process and have been in business long enough to know how to put the deal together. A loan officer in a bank won't know how to help you - they are just sales people, no understanding of underwriting.
Some mortgage brokers or credit unions/local banks could be a good resource to check into.
It could be that you'll research and find a more flexible lender in your area.
Hope this helps,
Beachfront Realty, Inc.