Refinancing with hight DTI

[Jackie Nguyen]

hey folks, i have a primary home with a mortgage and an investment property with a tenant inside and no mortgage on it. I recently acquired a building that i will be turning into a restaurant. I want to either cashout refi or get a HELOC on the investment property for about 250-300k to use towards remodeling the new building. My concern is my DTI to include front and back end is about 60-65% is there anyway i can take some of the funds from the cash out refi or heloc to pay down my debt and lower my DTI as closing to actually qualify? Or would i not be qualified until i am within their DTI range? Thank in advance

[Andrew Zamboroski]

Quote from @Jackie Nguyen:

Quote from @Andrew Zamboroski:

Quote from @Jackie Nguyen:

hey folks, i have a primary home with a mortgage and an investment property with a tenant inside and no mortgage on it. I recently acquired a building that i will be turning into a restaurant. I want to either cashout refi or get a HELOC on the investment property for about 250-300k to use towards remodeling the new building. My concern is my DTI to include front and back end is about 60-65% is there anyway i can take some of the funds from the cash out refi or heloc to pay down my debt and lower my DTI as closing to actually qualify? Or would i not be qualified until i am within their DTI range? Thank in advance

You can typically have debts marked to be paid at closing if that is what you're looking to do. Eitherwise, a DSCR loan could be a fantastic tool in this scenario. Qualify based on your properties income versus your own and save the headache of DTI calculations.

So when i go through the process for either the heloc or cashout refi, i can ask them to put it into a contract to pay down certain debt to bring the dti down to their desired percentage ? 

You should be able to work with your loan originator to facilitate payoffs for necessary debt that is taken care of with the transaction. As far as how much debt, etc.. would all depend on your current dti and needed amount to get you where you need to be. I hope that helps!