How to get around the DTI

Question

I've bee getting a lot of No's lately for the same reason over and over, my debt to income ratio. Any advise on the best way to get over that hurdle? The only thing I have is my primary home and student loans. Any advice would be helpful.

Thank you

Kristen L Garner · Answer

Hi Romie - NonQM products like DSCR will be your best friend! Feel free to PM me with specific questions - I work in your area.  Essentially DSCR (Debt Service Coverage Ratio) loans qualify you based on the asset itself.  If the rental income will cover the mortgage and you have a decent credit score you will be good to go.  It is one of my favorite products.  I even use it on my own personal investments. Best of luck! -Kristen

Cameron Tope · Answer

Hey Romie,

Unless you want to pay higher interest rates on non-QM loans, you'll need to increase your income or decrease your monthly debt payments.

Honestly, it's better to invest from a position of financial strength so I would take some time to pay down your debts, unless you can get a higher paying job.

Best of luck!