Applying for a primary residence mortgage immediately after purchasing rental property

[Anonymous]

We are currently living in a mobile home on family land that we plan on renting out once we purchase a new home.  Also we are in the process of buying a duplex that was appraised for $130,000.  We are purchasing for $100,000 and borrowing $70,000.  There are already renters in place on both sides.  I'm concerned about being able to purchase our new home right after taking out the mortgage for the rental property.  From what I've read, you must have 30% equity in the rental property.  Since the value was appraised at $60,000 more than the amount we are borrowing should we be ok in that regard?  And will this improve our chances of getting approved? 

[ezdriver]

If you meet the lender's DTI and other lending guidelines, you will be able to purchase. I believe that rental income has to have been reported on tax returns to be eligible for inclusion in DTI and other financial consideration.

[ShanetheMortgageMan]

You should be fine using the rental income from the duplex to qualify.  Since it's not on the most recent tax return then you'll only be given credit for 75% of the rent that is being charged.

As far as the mobile home you are living in, because it's converting your current primary residence to a rental property, then depending on the program you are qualifying for, in order to use it's rental income you'd either need to prove 25% (FHA) or 30% (conventional) equity in the property.