Qualifying STR Income For Refinance

[Chris Roberts]

I'm trying to get a HELOC on my primary residence but am having trouble because my DTI is too high due to the mortgage on an STR. It has significant rental income for 2023, 2021 and 2020 (none for 2022) but since it doesn't show two consecutive years on tax returns, they won't qualify the income. Is this standard across the board or are there lenders who can do this?

[Jay Hurst]

Quote from @Chris Roberts:

I'm trying to get a HELOC on my primary residence but am having trouble because my DTI is too high due to the mortgage on an STR. It has significant rental income for 2023, 2021 and 2020 (none for 2022) but since it doesn't show two consecutive years on tax returns, they won't qualify the income. Is this standard across the board or are there lenders who can do this?

HELOC rules are going to differ from bank to bank. There are no one set of rules that all lenders play by like a conventional loan being sold to Fannie/Freddie. So, you might call around to different bansk and ask how they would handle your situation.