Can a spouse purchase an owner-occupied home if the other person already owns property?

[Anonymous]

I married my wife last August and  2011 was the first year we filed taxes together.  I currently own 3 homes, would it be possible for her to finance an owner occupied home and rent out the house we are now living in?

[webhopper]

Yes. But the dti will have to include both the new payment plus the old payment; no allowance for rents gained since she hasn't ever claimed rent on her taxes. Obviously you can claim rents received as gross income. If you are applying for the new mortgage together this is good. Was her current house financed with Fha by chance? Also; depending on her % equity in the house you guys currently.occupy; she may have to have reserves equal to 6 months piti for the house you live in now; plus 2 months worth of piti for the house you are buying... depends on the loan program you use. I closed in January on a new home. My former home was a duplex owner occupied With an Fha mortgage. Its easier if the house you live in now is not in an Fha loan and has plenty of equity. Find a good mortgage broker! A bad one is not good! I wasted 5 months and over 15 mortgage inquiries working with lenders who didn't know how to underwrite this scenario.

my duplex is now my investment property... I just raised the rent and my new renter is the Vp of hr at the bank that holds the mortgage haha. I was hitting her up about an Fha streamline refi while I was showing her the house

[boomhower]

If I am reading it right you own a home and she doesn't.  Your looking to see if she can buy without you on the loan to avoid DTI issues?  She can buy a house in her name only no problem.  Whether or not the current house payment will be included in the DTI will depend on if your in a community property state or not.