I got a friend trying to buy a new property for him and his family. He's in sales and runs his own company. The house that he's wanting to buy is about 500k. FHA would work but the limit is too low for the house they want. A conventional loan will not work due to debt to income ratio. However, the bank is not including all of his income because he's only been self employed for two years. So, basically they are only counting his wife's income. If they included his income, there would no debt to income issues. He has spoken to multiple mortage lenders who basically finds this too complicated to figure out. So we decided to ask you guys, as I'm pretty sure someone has had this issue before and figured out other options to get the house. Location : Southern Kentucky
Rental Property Investor · Montgomery, AL · Member since 2017 · 277 posts · 221 votes
6y
@David Paul Most secondary market loans are going to be very difficult for him to qualify for as they are cookie cutter and require the borrower to check a list of certain boxes for which he doesn't. I would say his best bet is to find a local bank the does portfolio loans and reach out to them. I ran into the same exact issue down in Auburn, AL where I live when trying to buy a personal home this past April, but after contacting a local bank and asking for a portfolio loan product was able to get a great loan at a great rate in no time. I would recommend Cumberland Valley National Bank for your friend, I have some portfolio loans with them on some rental properties I own in Lexington, KY and they have been really easy to deal with. DM me and I can send you contact info for my banker there.