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varga197
209 Posts |
 Posted - 08/02/2008 : 10:46:47 AM
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I'm using Calyx and when it calculates net rent, it doesn't add it (or subtract it) from the income of the borrower, instead it adds or subtrcts from the total obligations. These two are not resulting in the same ratios. AUS engines, however add or deduct Net Rent from borrower's income. Eventhough the NET Rent is the same, you get different ratios when calculating as income and when calculationg as part of the obligations.
Which is it actually supposed to be? I think you have to add or deduct net rent at the income section... |
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SoCalRay
2698 Posts |
Posted - 08/02/2008 : 11:10:23 AM
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have to fill out schedule of real estate for point to calculate correctly
Don't fegt in point, you can hit the F! help key on any page for info on where to input info.
Also, Fannie Mae is requiring Tax Returns on on rentals, so you need to get the actual amounts collected on the rentals.
Fannie mae is only allowing using current rents if there was no rents collected on the property in the previouse year. |
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varga197
209 Posts |
Posted - 08/02/2008 : 11:46:29 AM
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Thanks. What I'm wondering about is this: The negative net rent in calyx is addet to the other monthly obligations. I uploaded this file to an AUS system and the negative monthly rent was deducted from borrower's income. Eventhough they are the same numbers, when deducting it from borrower's income you get a lower DTI ratio, than adding to total obligations.
Calyx explains it this way: "Note: The net rent figure from the Investment button transfers to the 1008 as Positive Cash Flow (Subj Property) under income or Negative Cash Flow (Subj Property) under Other Obligations."
Why did my lender's AUS page deduct net rent from borrower's income? I'm happy with it thoug because the DTI is actually lower this way. Just wondering which way is it supposed to be calculated.. Thank you for your comments in advance. |
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SoCalRay
2698 Posts |
Posted - 08/02/2008 : 12:34:01 PM
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It should deduct loss from incoome.
As well, it should add income if you have a positive income flow |
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