I currently own a home with my husband. My mother is trying to refinance her home which is also a rental property. The rent from tenants more than cover the mortgage. My mother is not working right now so they asked her if their was anyone she could put on the loan that has income. I have income but I am concerned about applying since I already have a mortgage. How do people get approved for several mortgages. Does my credit have to be excellent. I am in the mid 600s now and with this second mortgage I know my debt to income ratio would be off? Can anyone tell me what they look for for you to get a second mortgage for a rental property? Thanks sooo much
Your credit scores will not be affected by your debt to income ration -- scores do not take into account income. In terms of qualifying, remember that the rent that your mother receives is also considered income, so you should be okay. The easiest thing to do is have the broker "run the numbers." I have several properties all showing up on my CR and it hasn't adversely affected my credit scores or my ability to get credit. Just be sure all of the payments are made on time by your mother -- as a co-signer your CR will reflect her payment patterns.
