Do lenders consider rental income in your DTI?

Yes, we can add rental income as additional qualifying income. There are rules on what we can use depending on if you are a renter buying an investment home, you own a primary property and are buying your first rental property, or if you own a primary home and have rental management experience. I lend for properties in WI, MN, IA, ND, SD. Find me at WI-MortgageBroker.com / Cambria Mortgage NMLS 274132

When you're applying for a mortgage backed by Freddie Mac for an investment property you plan to rent out, whether the lender considers rental income in your debt-to-income (DTI) ratio depends on a few factors.Basically, they'll look at the rental income if you can prove it with things like a lease agreement, rental history, and maybe even a rental appraisal. But they won't count all of it. They'll take out a vacancy factor and also consider expenses related to the property before adding it to your income.Including rental income could help improve your DTI ratio, which is a good thing because a lower DTI ratio means less risk for the lender and a better chance of getting approved for the loan.But for the best understanding of how rental income impacts your specific situation, I encourage you to reach out to me. Let's have a conversation to explore your options and ensure you make informed decisions about your mortgage.