Conventional lender recommendations Chicagoland

5 Replies

Side note: I hope this doesn't violate BP's TOS. Does this post qualify as a lender request? If so, I'll take it down.

Hello everyone, long-time lurker here on BiggerPockets. I've learned a huge amount from these forums; thanks for all the good info everybody has contributed!

I just submitted a purchase offer for my first rental property: a 2-unit that cash-flows well reasonably close to my house (I will self-manage). Here's my situation though: I have enough cash for a 25% downpayment/points/closing costs, but my mortgage broker is unwilling (or doesn't know to try) to count any rental income towards my DTI because I don't have two years of Schedule E's. This puts me in a tough spot, because the mortgage payment is going to be just out of reach for my DTI (roughly 53%) unless I'm able to count rental income right away. I'm self-employed, so I could try not deducting as much on my 2017 taxes to make it look like I have more income, but then I'd have a huge tax bill and wouldn't have as much for the downpayment.

I'm going to be contacting portfolio lenders this week to ask about their requirements/rates, but in the meantime, I was wondering whether anybody has suggestions of conventional lenders who don't overlay Fannie regs here in Chicagoland. I'd like to save as much money as possible with this deal.

Thanks all.

Jon

@Jon N.

First - You should report an accurate return. Do not over or under report expenses in hopes of getting a loan.

Second - If your broker is not willing to find a lender who will count the rental income - you should find another broker or to call up lenders yourself. I am currently looking for my second property and my lender is asking me what the projected rental income will be so he can count it towards my DTI.

@Jon N. maybe try to post this in the Illinois forum?  There you will get more local people who might be able to give you some good recommendations.  Just an idea.

Originally posted by @Jon N. :

Side note: I hope this doesn't violate BP's TOS. Does this post qualify as a lender request? If so, I'll take it down.

Hello everyone, long-time lurker here on BiggerPockets. I've learned a huge amount from these forums; thanks for all the good info everybody has contributed!

I just submitted a purchase offer for my first rental property: a 2-unit that cash-flows well reasonably close to my house (I will self-manage). Here's my situation though: I have enough cash for a 25% downpayment/points/closing costs, but my mortgage broker is unwilling (or doesn't know to try) to count any rental income towards my DTI because I don't have two years of Schedule E's. This puts me in a tough spot, because the mortgage payment is going to be just out of reach for my DTI (roughly 53%) unless I'm able to count rental income right away. I'm self-employed, so I could try not deducting as much on my 2017 taxes to make it look like I have more income, but then I'd have a huge tax bill and wouldn't have as much for the downpayment.

I'm going to be contacting portfolio lenders this week to ask about their requirements/rates, but in the meantime, I was wondering whether anybody has suggestions of conventional lenders who don't overlay Fannie regs here in Chicagoland. I'd like to save as much money as possible with this deal.

Thanks all.

Jon

 I will PM you mine.  I forget which one (Fannie or Freddie) doesn't let you count it.  

My lender can do it for sure, I have helped clients add $100k a month in rental income to their portfolios last year and every time we used rental income 

Reach out to @Zack Karp , he will get the job done. I've used him a couple of times, he and his team are top notch and they are in the NW Burbs too....  Mark 

Thanks for the tag @Mark Faustrum !

@Jon N. sounds like you might be working with the wrong lender.  This is my specialty, and I am a guideline guru.  Happy to take a look and see if you qualify.  I'll send you a PM.

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