I am on title on a manufactured home in Washington State with a relative. I am trying to refi it, but the lender says the combined DTI is 49% and needs to be 43%. The loan officer is not including the income from our basement apartment rental. He says that after I file taxes they will include the income. Is that accurate? or do I have other options.
There's always other options. Each bank has their own requirements, such as minimum and maximum loan amounts. Also, might have different requirements for income on your basement rental. Some banks all they need is proof of a security deposit, maybe first/last months rent along with a copy of the lease agreement, and can be counted. The best place to look might be the community credit union. In washington state, a basement rental would be considered an accessory dwelling unit (ADU), so not sure if Utah has same thing, but any government regulation / approval that says you are able to rent out your basement might help as well?
If the manufactured home is on it's own land, I would imagine you would be able to find something, and during these times a pretty good rate too. Don't get discouraged, just call another bank. You could also look at getting a home equity line of credit and use that as your mortgage. Boeing Credit Union (BECU) offers HELOCs on investment properties, I got mine at 80% LTV, which actually freed up some additional equity that I could borrow from should I need it. You might have issues getting membership at BECU since you are out of state, but might be able to get in because of your relative, but just an example.
Thanks Andrew. I appreciate the info. I'll scout around the banks and credit unions.
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