Include rental income on applications?

[Anonymous]

I would like to apply for a new credit card but I am not sure how to report my rental income and mortgage expense on the application. I receive monthly rent which increases my annual income by nearly 15,000 but then I have the $1200 mortgage payment as well.  But I am currently renting a house for $1000 so do I include that expense as well? Or should I leave that off?  

I guess I'm just concerned that $2200 in mortgage/rent expense will look too high to creditors, even if my combined gross wages + rental income is nearly $100,000. I want to be honest on the application.

Thank you!

[Anonymous]

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@Anonymous wrote:

I would like to apply for a new credit card but I am not sure how to report my rental income and mortgage expense on the application. I receive monthly rent which increases my annual income by nearly 15,000 but then I have the $1200 mortgage payment as well.  But I am currently renting a house for $1000 so do I include that expense as well? Or should I leave that off?  

I guess I'm just concerned that $2200 in mortgage/rent expense will look too high to creditors, even if my combined gross wages + rental income is nearly $100,000. I want to be honest on the application.

Thank you!

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Include both your mortgage and rent in your expenses and the rental income in your total income and you'll be fine.  If that's the truth then no need to worry.  Good luck.

[iv]

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@Anonymous wrote:

I guess I'm just concerned that $2200 in mortgage/rent expense will look too high to creditors, even if my combined gross wages + rental income is nearly $100,000.

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Showing $2200/month in housing costs on a $100k/year income will not look too high to creditors... that's only about 26% front-end DTI...

[Anonymous]

I just report the profit and my own mortgage expense. The rental mortgage is a buisness expense not your own housing expense. And since the buisness expense cuts into the income you're only making what you have left after it each month.

[Anonymous]

I agree with Fluffybubbles. You list ALL income available to you. Income includes rental properties. If they ask YOUR mortgage/rent cost, that would be your individual cost.

[Anonymous]

If you ever get FR'd, they'll want your taxes, so I'd list anything you claim!

[steelers1]

Add only the net profit of your rental income to your income on the app, not the gross rents.

Look at your 1040 from last year and your income on the apps should match your income on your 1040.

Then you will never have an issue providing POI.

[Erick12]

I've got a similar problem, though I don't have a separate income property. I have a roommate and a SO paying me rent every month. My mortgage is wildly unaffordable on my income alone and my non-resident coborrower/coowner is what allowed me to get it. Coowner could pay but our understanding is that short of an emergency they will not and I am solely responsible. And their income wouldn't be on any credit application I put in.

I get that net payments minus mortgage is a more accurate reflection of my income, but that will also lead to double counting the mortgage, since the creditor is going to see the mortgage on my report and wonder how I'm going to pay it on just my salary. If I include gross rental income in my income, then they can subtract from that, leading to an accurate result.

Sometime in the future when things get more official, I could inlude the SO under household income but I think that's the least legitimate option at this point.

[Anonymous]

In your case you probably could get away with counting the full rental income since its all towards the mortgage that's in your name and not a separate home/mortgage.