Won an auction, DTI is High to secure Loan

5 Replies

I have won an auction on a house that I just love to own for myself and I know that after the touch ups it needs, the value added will be at least 100k more than the purchase price. The fixing it needs is about 25-30k (On the high end). The issue I have now is that it’s coming up to 54% debt to Income Ratio.

I have a little over 30k for closing/down payment!

Solutions?

@Richard Jr Caicedo I am actually being very conservative with the numbers and that is the route I am seeking at the moment. I wasnt sure if others have another creative ways to finance the deal. Hard Money Lenders have not been that great of a help, at least the ones I reached out to.

Originally posted by @Taghlub A. Nassar :

@Richard Jr Caicedo I am actually being very conservative with the numbers and that is the route I am seeking at the moment. I wasnt sure if others have another creative ways to finance the deal. Hard Money Lenders have not been that great of a help, at least the ones I reached out to.

HML don't lend on owner occ properties. a very very few do the ones I know are in CA.

Get a hard money loan to fix up the property. That will buy you 12 months. If after 6 months you can't find a co-signer or get your financial ducks in a row, sell the property, set aside 30% for taxes and use the remainder to pay off your debts to get the DTI ratio in a better spot.