DTI ratio and being able to refi with the BRRRR method

3 Replies

Hi BP community, I'm trying to figure out how ready I am to start investing. I understand that utilizing the BRRRR method means taking on mortgages. How are lenders/ banks calculating your eligibility to refi and investment property? I ask because I am a recent college student that is about to begin making loan repayments.

Originally posted by @Derrick Alexis :

Hi BP community, I'm trying to figure out how ready I am to start investing. I understand that utilizing the BRRRR method means taking on mortgages. How are lenders/ banks calculating your eligibility to refi and investment property? I ask because I am a recent college student that is about to begin making loan repayments.

Conventional lenders will look at DTI, you also probably want a lender that can count rental income right away towards dti. You definitely want to have conversations with lenders about the refi well ahead of time so you know what is needed.

you'll want to ask about seasoning, dti, and rental income helping qualify you for the loan.

There are some lenders in commercial or HML space that can help with a refi and not have to look at dti, but usually they are a more expensive but it can still work in right deal.

@Caleb Jordan Thank you for that reply, that was definitely helpful. I believe I've been in contact with an representative of your company before. I would appreciate a bit more information on your flip loan programs if possible.

Originally posted by @Derrick Alexis :

@Caleb Jordan Thank you for that reply, that was definitely helpful. I believe I've been in contact with an representative of your company before. I would appreciate a bit more information on your flip loan programs if possible.

Glad to help. I'll send you a private message.