How to remove seller's mortgage from DTI on a subject to deal

[Christian Roberts]

Hey BP family! 

I want to use creative financing on my next deal. A common objection I hear when speaking to sellers is that they'd love to sell to me subject to but it will affect their DTI when they go to buy a new house. Is there a way to remove the mortgage from their DTI once I take it over? Any help on this would be greatly appreciated! Thank you!

[Ben Zimmerman]

Have the loaned serviced. It costs maybe 25-50 bucks per month and the servicing company will provide all of the required documentation for their new lender. For the first 12 months only 25% of the debt is counted towards the DTI, after 12 months none of it counts towards their DTI.

If someone is desperate enough to sell their home sub-to, chances are good that they aren't buying a new property within a year anyway.