Lender · United States · Member since 2020 · 1k+ posts · 499 votes
5y
What's your version of "normal interest rates"? There's commercial lenders that don't look at your dti, but rates will often be in the 5-6% range. The mortgage won't show on your credit, so that's a plus.
It's important to be realistic in your search. Asking to get the benefits and rates of low risk borrowers while you are considered high risk to banks due to dti isn't realistic.
Lender · United States · Member since 2020 · 1k+ posts · 499 votes
5y
What's your version of "normal interest rates"? There's commercial lenders that don't look at your dti, but rates will often be in the 5-6% range. The mortgage won't show on your credit, so that's a plus.
It's important to be realistic in your search. Asking to get the benefits and rates of low risk borrowers while you are considered high risk to banks due to dti isn't realistic.
I am exploring strategies on investment properties on how to procure more mortgage loan, but with higher DTI.
1. How to attain mortgage loans with higher DTI, and normal interest rates.
2. Are there any prominent lenders that could give loan for higher DTI.
3. Are there any specific states where DTV does not matter a lot.
( I am aware that DTI limits are defined by Freddie/Fannie)
Investor is individual, no LLCs are involved:
Thank you for your assistance.
-A
This is the definition of why you would use a DSCR loan. Fannie and Freddie and subsequent users of Fannie and Freddie aren't going to deviate from established guidelines to manually underwrite a loan, particular on an investment property, and close that loan only for it not to get bought. That's silly.
Just go with a DSCR loan and save yourself some hassle. Rates are in the 5-8% range (depends on the deal) with a couple points and call it a day. We are in a period of historically low rates for both conventional and DSCR loans. Use what you qualify for.