I am currently trying to use the equity on the 1st home with a credit union bank , I want to do a cash-out refinance of 80k to purchase a 3rd property, but the credit union is saying that my debt to income ration is at 49% and it’s not letting me qualify. I don’t get how I can’t qualify My only debt is the two mortgages and a car payment. My mortgages are $700 and $1380 , I rent my second home out so that should help cancel that payment on my debt ratio right? I’m looking at a 15yr 2.5% rate. Can I get some guides please please?
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6y
@Derwin Davis I would reach out to at least 3 other local banks that do real estate investment loans or HELOCs. Most often this is raised with good payment history and good job/steady income. I think banks are a bit nervous right now and pulling back on lending unless it fits stricter criteria. Hope this helps.
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6y
@Derwin Davis I would reach out to at least 3 other local banks that do real estate investment loans or HELOCs. Most often this is raised with good payment history and good job/steady income. I think banks are a bit nervous right now and pulling back on lending unless it fits stricter criteria. Hope this helps.
Kansas City, MO · Member since 2018 · 91 posts · 30 votes
6y
How long has your rental Ben producing income? Financial institutions count 80% of the rental income towards your income. If your numbers are off on a rental it may be hurting you. Next option is to pay down the debt and refinance to show a lower DTI.
Investor · Holmdel, NJ · Member since 2018 · 28 posts · 4 votes
6y
DTI for most lenders I deal with on a day to day basis are normally around a max DTI ratio of 54-57% per bank policy. Definitely check out some credit unions, they may have more lenient policies.
DTI for most lenders I deal with on a day to day basis are normally around a max DTI ratio of 54-57% per bank policy. Definitely check out some credit unions, they may have more lenient policies.
I'm coming in at 52% DTI, should I refinance my second home back to 15yr term to drop the payment $980 from $1380? And do my first home back to a 30yr I currently have 8yrs left on it, I want to prepare myself for the summer deals that will be available in the summer by tapping in to the equity and having a down payment of 80k for a 3rd property. I just need to know how to make the next move to get approval, I'm gonna try 3 other banks today