Stuck -getting approved loan

[Tiffany Smith]

Hi Everyone,

I am running in to a problem with lending. I am not getting approved for a loan due to my debt to income ratio. I purchased a 2-unit last year that has appreciated tremendously.  I house hacked, as I live in one unit. I wanted to refinance and then apply for a loan to purchase a new multi-unit. Other issue is I have another property in my name fully paid for and my father pays the taxes and HOI on it. But, it is coming up as debt for me... Any suggestion on what I can do to get a loan approved?

[Stephanie P.]

Originally posted by @Tiffany Smith:

Hi Everyone,

I am running in to a problem with lending. I am not getting approved for a loan due to my debt to income ratio. I purchased a 2-unit last year that has appreciated tremendously.  I house hacked, as I live in one unit. I wanted to refinance and then apply for a loan to purchase a new multi-unit. Other issue is I have another property in my name fully paid for and my father pays the taxes and HOI on it. But, it is coming up as debt for me... Any suggestion on what I can do to get a loan approved?

Congratulations on successfully house hacking.  Well done.

Here's a strategy that will work for you.

Do a cash out refinance on the non-owner occupied property using a no income verification loan.  Take the cash out and use it as your down payment for the new multi family.  Do both loans in an entity so you don't damage your debt ratio further.  Leave the owner occupied property alone because your debt ratio is precluding you from  going full doc.

PM me if you need further details

Stephanie