Looking for a HELOC! Need common-sense underwriting!
My primary residence is worth between $775K and $800K. I'm a realtor so that value should be very close to accurate. I have a first loan at $384K and I'm looking to get a HELOC (home equity line of credit) for between $150K and $200K which would still keep me below a LTV of 80% pretty easily. Seems easy, right?
Hurdle 1) I purchased 4 rental homes between August of 2015 and November of 2015. The homes all cash flow positively. Here's the hurdle by using 1 of the rental homes as an example: Home purchased August of 2015 has rental income of $3,300 per month. PITI is $2409. That works as cash flow positive. I got rejected on a HELOC by a credit union because they will see the $2409 in expenses on my credit report, but they won't look at a lease agreement, but will only take income from my tax returns which 2015 tax returns aren't out yet and 2014 tax returns won't show a home purchased in 2015. If you multiply these scenario by 4 homes and I can't use any rental income, you can see why my debt to income ratios would be out of whack unless the HELOC will consider the rental income off these homes. To me, if you can count the debt that started 8/21/15, why can't you count the income that started 8/21/15?
Hurdle 2) I had a short sale on a home in August of 2011. Fannie Mae and Freddie Mac require that it's been past 4 years, you can get a home loan. I am past 4 years, but some lenders follow Fannie/Freddie and some of the places that I've talked to have their own overlays which are more strict than Fannie/Freddie.
Any credit unions or other places that might be okay with these 2 hurdles?