Running out of DTI on conventional financing

[Larry Zucker]

New to BP and really enjoying the great information in the forums.

I have two rental properties purchased in the past year with good cash flow. They are financed with 20% down through a conventional loan with a portfolio lending credit union. Between those two properties and my primary residence, there is not enough DTI left to do another conventionally financed deal and hard money seems too short term for a buy and hold.

I am hoping to find a lender that will recognize the rental cash flow as full supporting the rental properties debt so it does not weigh as much on DTI and if they can do that with no income verification that would be great.

Does such an animal exist?

[Kenneth Garrett]

@Larry Zucker

You could go the commercial lending route. Few rules, but no DTI requirement. Need to own it in an entity, higher interest rate 1% or so, no limit on how many, need operating agreement. Minimum debt coverage ratio of 1.25. It must cash flow. The commercial loans never show up on your personal credit. It's just an alternative. There are many options, but they will all have a higher interest rate than a residential loan.