Getting a Mortgage on Low Salary but Big Savings?
Need your help BP team!! My sister-in-law brough me a problem I'm having a really hard time figuring out. Here's the deal:
- She owns a small disaster recovery services business and has a newly awarded contract with FEMA
- She pays herself a fairly low salary from the contract because it's all she needs, so from the bank's perspective she has low income
- She has a huge cash savings stockpiled and which she is building (she just started this business) in order to make payroll in periods where FEMA contract disbursements are slow
- She's preparing to place an offer on a multi-family she currently lives in and rents from; she could pay cash for the property from her small business savings but needs to save that cash for the above mentioned reason
- She's called multiple banks but can't find one willing to lend due to her "low DTI ratio"
I think she just hasn't found the right lender and is probably calling big box banks looking for conforming loan terms. Thoughts? Does she just need to find the right private, portfolio or investment-oriented lender? What's the best way to find the right kind of lender for this situation?