DTI impact is one of the most practical considerations for BBYS borrowers. The answer depends on the specific program structure and how the departing residence payment is treated in the underwriting of your new purchase loan.

When the Departing Residence Is Excluded

In many BBYS structures, the departing residence mortgage payment is excluded from your DTI calculation for the new purchase. This happens when the lender is satisfied that the equity in the departing residence is sufficient to cover the outstanding mortgage upon sale, and the home is actively listed or under contract. In this scenario, your DTI is calculated only on the new purchase payment plus your ongoing debts — making qualification significantly easier.

When Both Payments Count

In some bridge loan structures, or when the departing residence does not have sufficient equity to support payment exclusion, the underwriter may include both mortgage payments in your DTI. This requires enough income to support both obligations simultaneously.

Rental Income Offset

If you rent out the departing residence, 75% of documented or market rental income may be used to offset the departing residence payment for DTI purposes, reducing its impact on qualification.

Working With Your DTI

Lendia will model your DTI under the applicable program structure before you apply, so there are no surprises at underwriting. If your DTI is tight, we can explore income documentation options — including bank statements or asset depletion — to strengthen your qualifying income.