How to get a loan with no dti?

5 Replies

Hi. Even though I am not new into the real estate business I am having trouble to get financing for an investment property I own free and clear for which I want to do a cash out refinance  in order to buy more properties. Keep in mind my debt to income ratio is pretty much at its limit due to my primary home and the income declare on my taxes as self-employed and the investment property I own is under a Trust.

I will appreciate any advise on how would I be able to get a loan without necessary going to a hard money lender who will charge me an arm and a leg on interest.

Thanks in advance for your comments and help.

@Account Closed I know the option will be to go to a private mortgage lender but like I said on my initial post I do not want to pay the typical private money lender  interest rates which are too high in comparison to standard lending options. I am willing to pay a little more than conventional interest but no where near close to what a private lender or hard money lender will ask. 

@Miguel Maria

Do you file schedule C, or go through Corp or partmership?

Is the investment property the only self employed income you have.

Is the trust only you, joint or with someone else in your family.

How many mortgages do you have and finally is your last 12 months stronger income wise than a 24 month avg?

Originally posted by @Miguel Maria :

@Account Closed I know the option will be to go to a private mortgage lender but like I said on my initial post I do not want to pay the typical private money lender  interest rates which are too high in comparison to standard lending options. I am willing to pay a little more than conventional interest but no where near close to what a private lender or hard money lender will ask. 

As our point out, you really have no standard lending options, with the conventional guidelines for DTI being what they are. As far as Rares and fees for HML, it always amazes me that investors have no problem paying someone to collect rents and arrange for repairs and charge 10% for it, but when a private lender says, sure I'll loan you 70% ltv, at 10% interest, that's too much! LOL, I think you have to look at the value of what you are being given and what it allows you to obtain. At the end of the day, you are not paying for our money anyway, your tenants are. You price the costs of capital into your deals, just like you do for management fees, and maintenance reserves, taxes, insurance, etc. Having easy access to my money at 10% as often as you need it to acquire more properties, is less expensive than having no access to conventional money which is not that much cheaper (when you factor PITI payments v. ITI payments and speed to fund (4-7 days for me) v 30-45 days for conventional (if you're lucky.) You can't make money if you're not in the game. Fast, readily available capital that's easy to access is never cheap...but cheap capital is never fast, normally not readily available and rarely easy to access. Just my 0.02 worth.