Ways to finance deals with high debt to income ratio

6 Replies

Good morning BP!!! I have recently run into an issue that I rarely hear spoken about on podcasts or on the forum but I’m sure someone somewhere has had the same experience. I am currently a college student finishing up my undergraduate degree in May, which means that I have accumulated significant amount of loan debt. I have a fairly decent job and I own a rental property that helps supplement income also. This issue that I am having is that my debt to income ration is too high for many banks to give out loans to help finance deals even thought my credit score is good. I have come to the forum to see if anyone else has had this similar experience and what steps did they take to not allow this situation to stop them from investing? I am open to suggestions!!! PLEASE HELP

@John Morgan

Off the top of my head, find a partner that is willing to either help with the cash or with the credit so that your DTI works on deals.

If you're doing flips, hard money doesn't normally go by your credit or DTI.

@John Morgan I'd agree with whats already been stated here go with an asset based lender, know your numbers and make sure that the deal is worth making.

I’m currently dealing with the same problem. The advice I was given, aside from private investors, was seek financing from your local credit unions first, then banks. I’m sitting inside a local credit union at this very moment hoping to get approval. Wish me luck and best of luck to you!

@Shawndrika Hardie

Thank you for replying!! I’m sorry you’re also experiencing this also! It’s definitely a headache and requires us to think outside of the box for creative ways to finance. Best of luck to you and please if you don’t mind please update me on the outcome of your situation! I’d love to stay connected with other people who are also In the same boat as me! 😁

@John Morgan Have you work on your student loan payment plan? That help to lower your DTI.

@John Morgan Hard money lenders are asset based lenders so your DTI shouldn't matter as much to them. But they do have higher rates than a bank. Pros and cons as with everything

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