How do rental properties factor in?

[KeepSwimming]

My fiancé and I are hoping to buy something this spring.

I bought my first house in Virginia, kept it for two years and upgraded with my ex in 2007. The house is in my name only because his credit wasn't great. We split in 2008, I moved out west and he agreed to stay and cover the mortgage (we are on good terms, luckily)....I claim the property as a rental on my taxes.

What, if anything, will this mean when my fiancé and I look in the spring? Is it seen as extra income, or a wash since it just pays what's owed monthly? Payment history is perfect, and the ex has no intentions of moving.

Just to clarify, I don't really care that the rental payment counts as additional income....I am more curious if it will ding me on the DTI.

[IOBA]

My suggestion would be to get your x to sign a rental agreement and have it back dated to the date he started to "rent" from you.   The rental agreement backs up your tax return. 

Your mortgage is on your credit report, so yeah, you should have the rental agreement and the copies of your tax returns to show it washes.

Good luck!

[Anonymous]

From my understanding, if you have filed taxes, the net income/loss will be included since you will have filed taxes on it for a few years. BUt, it depends. It may not be counted in your DTI. However, be very careful in your calculation of the rental revenue and how that translates to income or loss. If you have a loss, I am not sure if they will inquire as to why and how and may want to include it in your DTI.

Ask your broker once they have analyzed your specific situation.