Options to remove mortgage from personal DTI

[Brandon Warren]

My wife and I bought a new home (primary residence) about 6 months ago with the intention of turning it into a STVR. We are living in it for the first year as required with the conventional loan but I'm not sure how we make the move out of this house with the debt still in our name. Is there a way we can transfer or sell the house to our LLC so the mortgage payment falls off our DTI and we can buy a new primary residence?

[Kevin Post]

Quote from @Brandon Warren:

My wife and I bought a new home (primary residence) about 6 months ago with the intention of turning it into a STVR. We are living in it for the first year as required with the conventional loan but I'm not sure how we make the move out of this house with the debt still in our name. Is there a way we can transfer or sell the house to our LLC so the mortgage payment falls off our DTI and we can buy a new primary residence?

Brandon, you don't need to transfer it or refinance it. I would advise against that if you have a good rate on it. Refinancing to DSCR will only increase your rate not to mention several DSCR lenders still report to credit. Secondly, you don't need to wait to do your next set of tax returns, if you buy a new house(lets say structured as a primary) the lender will give you 75% of the market rents when qualifying for a new loan and treat it as a departing residence. I deal with these exact situations with real estate investors all the time. Reach out if you have further questions.