Trouble with getting mortgage (income is mostly from flips)

[Derek Martin]

I'm having trouble getting a mortgage because about half of my income is from flipping houses (capital gains), and I am only showing 2 years of consistent flipping (capital gains) income.

The other half of my income comes from rental property that I have been reporting for 3 years consistently.

I have plenty of equity in all my properties but do not want to sell or refi any of them (I have partners)

Anyone have any advice on how to get a mortgage when half of your income comes from capital gains / flipping?

[J Scott]

First, you need to find a good accountant.  Flipping income is NOT capital gains -- it's ordinary income that will be taxed at your marginal rate.

Second, once you have two years of tax returns indicating this income, most conventional (and pretty much all portfolio) lenders will allow you to use this income towards your DTI.

Until you have two years of tax returns, I would suggest trying to find a portfolio lender in your area who is willing to underwrite without two years of tax returns.