I’m planning to buy another house in the next year or two, but my main concern right now is my debt-to-income ratio. Once I have a full year of rental income from my investment property and can include it on my taxes, I should be fine.
However, I’m still listed on a car loan that I took out for my girlfriend at the time. She’s been making the payments, but since the loan is under my name, the $535 monthly payment still shows as my liability.
What options do I have to remove or offset that debt so it doesn’t affect my debt-to-income ratio when I apply for a mortgage?
Improving Debt-to-Income Ratio for Future Home Purchase
byu/exit2_dopeboy intax
Posted by exit2_dopeboy
1 Comment
Pay it off or have her refinance it solely in her name. Also, you usually need 2 years of rental income for it to count or you will have to do an appraisal and some forms, depending on the lender and lending program you use. You can always increase your income or pay off your other debts to lower your dti.