Residential Purchase Dilemna

2 Replies

So my wife and I are trying to figure out how to solve our residential housing puzzle...We're currently in a $550K house with approx $200K in equity...House is too big and we'd like to downsize to about a $350K home...problem we've run into is that I lost my job at the end of last year (and am now focussing on our fledgling RE business) along with a 6 figure income - we also own two SFR rentals. My wife has a decent job, but without my income, our DTI has pushed past the acceptable, conventional criteria. We can certainly afford our current (and potential new lower) mortgage, but we'd need a workaround...if one exists.

Anyone have any creative financing ideas about how we might be able to accomplish the downsizing with the variables I've presented?

Thanks!

@Peter Padalino Would you be open to renting out your current primary? If so, how much could you rent it for? If you took that amount and depreciated it by 25%, would it cover the full nut for your current home? 

You may be able to wipe out that full payment. If your other rental properties at least break even on your tax returns, perhaps your wife could qualify for the new one on her own. Just an idea. Would be happy to work through the numbers with you if you would like. 

Hi Peter,

I'd suggest getting a second opinion from @Jared Bouzek . It's 100% normal for an REI friendly lender to be able to say "yes" when a more traditional lender says "no."

Over 600,000 licensed mortgage lenders in the US at this point, the overwhelming majority have no idea how to work with REI and multiple rental properties. Our licensing "training" does not spend a single minute on how rental income works in the mortgage math, kind of like if you could become a nurse without knowing how to give CPR or something.