Interesting points here, and I agree that lenders definitely weigh both factors carefully. From my own experience, though, I'd lean slightly toward debt levels being a bit more critical than just having a high income.
A couple of years ago, I was helping my brother-in-law navigate his first rental property loan. He had a solid income—nothing spectacular, but steady and reliable. The issue was that he had recently financed a new truck and still had some lingering credit card balances from a home renovation project. His DTI wasn't terrible, somewhere around 35%, but the lender seemed pretty uneasy about the amount of monthly obligations he already had. They kept asking questions about how he'd handle vacancies or unexpected repairs if they popped up.
Eventually, they approved him—but only after he agreed to keep a larger-than-usual emergency fund in reserve. It felt like they were more concerned about his existing debt commitments than his actual income level. On the flip side, one of my close friends applied for a similar loan around the same time. She earned significantly less than my brother-in-law but had virtually no debt at all—just one small car payment and no credit card balances. Her approval came through quickly and without much fuss.
I think lenders are cautious because they're looking at worst-case scenarios: what happens if you lose your tenant or have to replace the roof unexpectedly? Even if your income is high, if most of it is already spoken for each month, there's not much room left to handle surprises comfortably.
Of course, every lender has their own criteria and comfort zones...but from what I've seen personally, keeping your debts manageable seems to give lenders more confidence than just having a high salary alone. Stability definitely helps too—steady employment history can smooth things over—but debt levels seem to carry slightly more weight in their decision-making process.
Had a similar experience when I refinanced my rental last year. My income was pretty decent, but I had just bought a new SUV and had some leftover student loans. The lender grilled me about how I'd handle vacancies or repairs. They approved me eventually, but it felt like pulling teeth. Seems like lenders really prefer seeing fewer monthly obligations rather than just a big paycheck...
I get your point, but I'd argue lenders aren't just fixated on low debt. They're really looking at the overall debt-to-income ratio and cash flow cushion. I've known people with moderate debts who got approved easily because their rental income was strong enough to comfortably cover vacancies or unexpected repairs. It's less about having minimal obligations and more about demonstrating that your finances can handle stress without relying solely on your paycheck...
Exactly, lenders definitely look beyond just debt levels. I've noticed they're also big on your track record—like if you've successfully managed rental properties before, they're more comfortable even if your debt isn't super low. Had a buddy who had decent debt but got approved no problem because he showed consistent cash flow from his other rentals. So yeah, it's really about proving you can handle unexpected hiccups without getting squeezed financially...
That's a good point, but honestly, I think lenders still lean pretty heavily on income. Had a friend who had zero rental experience, like none at all, but got approved purely because his day job paid really well. The bank didn't seem bothered by his lack of track record. So while past success helps, seems like steady high income can sometimes trump everything else... Guess lenders just love seeing those paychecks roll in regularly, huh?
