Updated almost 7 years ago on . Most recent reply
I'm Stuck on the Refinance on my BRRRR.
Back in August I bought my very first property. I was able to do this by taking out a Home Equity Line of Credit on my personal house for $30,000 and some credit cards. I paid 10,000 for the house and another 25,000 for the rehab. I have the house rehabbed and rented for $750/mo and now I am trying to get it refinanced so I can pull my cash back out and do it again. The appraisal should come back around $75,000. When I go the the bank I am told that my debt to income is to high. Do I need to just keep looking with different banks, or is there another option?
Most Popular Reply
DTI is a factor that conventional Fannie/Freddie lenders and banks take into consideration.
Make sure they are accounting for 75% of your rental income in addition to your regular income.
If this still doesn't satisfy the DTI requirements then you need to refinance via a commercial/portfolio loan.