debt to income issue for my buyer

[Paolo Ruggieri]

All - I am trying to sell my house to my tenant. It would be a huge WIN-WIN. I need to get him qualified for financing. I went through 3 mortgage officers and brokers I worked with in the past... they all told me the same thing: debt to income too high. I need help! CAP rate on this house is not as high as I would like, tenant really wants to buy it (and has lived there for 30 years)... I purchased it because price was 60% of market, but now I would like to unload it as market price to my tenant that prefers to pay a mortgage instead of a rent. Here are some data:

- tenant is a veteran

- issue with debt to income are credit card bills and cars payments. i understand that for the cars solution is easy... tenant can sell those cars, uber around for a few weeks while mortgage gets approved, and then purchase them back. Credit card are a problem... i think he has a whooping 20k-30k credit card bills with high interest... where he can barely pay the interest every month... it's a deadly spiral for him

- credit is ok... he does not have bad payment history, but because he maxed out his limits with the cards, credit is in the low 600s

- we can figure out something for his downpayment 3.5%, but he can't put anything substantial down

- his debt to income ratio without cards and cars would be 40% (right at the limit of a VA loan)... with all cards and cars it's 60%+

He would not mind at all a high interest rate. I would be ok helping where I can if neededs. He is willing to pretty much sign any type of agreement.

Suggestions? 

[Jeff B.]

IMO, your problem is seeing the tenant as your SOLE prospect for a buyer.  It's nice to be loyal, but you're allowing his problems to become your problems - - poor choice.

Get an agent and list on MLS to just move on.