High DTI, credit score 760+, W2 income 300k+
Hello all,
I am looking to purchase a home overseas as a holiday home/ air bnb. I own 4 rental properties and my tax returns have quite a bit of write offs resulting in high DTI. Besides that, I have plenty of equity built up, w2 income is strong, high amount in 401k etc. I'm trying to figure out how to get this finance since HELOC is rejecting me due to over 50% DTI. Thank you!!!
@Sapna Kurdikar have you looked into a 401k loan? or a fixed equity home loan?
Quote from @Sapna Kurdikar:
Hello all,
I am looking to purchase a home overseas as a holiday home/ air bnb. I own 4 rental properties and my tax returns have quite a bit of write offs resulting in high DTI. Besides that, I have plenty of equity built up, w2 income is strong, high amount in 401k etc. I'm trying to figure out how to get this finance since HELOC is rejecting me due to over 50% DTI. Thank you!!!
Hey Sapna,
It sounds like you would benefit from a DSCR cash out refinance. DTI is not required.
I second @Erik Estrada recommendation. Non-conforming products like DSCR (Debt Service Coverage Ratio), Bank Statement Loans, Asset Based Loans, etc are a great work around for DTI, taxes showing too many write offs, and also for the self employed. These products also give you the option of closing in an LLC unlike conventional, conforming loans. Depending on your scenario you can expect to get around 75% LTV on your cash out with products like DSCR.
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Lender Wisconsin (#1660690), Iowa (#2189887), Rhode Island (#2189887), Alabama (#2189887), Tennessee (#2189887), Nationwide (#2189887), Washington (#MLO-103098), Oregon (#2189887), New Jersey (#2189887), North Carolina (#I-210621), Idaho (#MLO-2082189887), Colorado (#100531120), Idaho (#2189887), Texas (#2189887), Nevada (#76744), Montana (#2189887), Arizona (#1034355), South Carolina (#MLO - 2189887), Ohio (#MLO-OH.2189887), Michigan (#2189887), IL (#031.0074060), Georgia (#2189887), Connecticut (#LO-2189887), Indiana (#53742), Florida (#LO93837), and California (#CA-DFPI12189887)
- 213-880-0434
- http://kristenloans.com
- [email protected]
Thank you! This seems like a good option for me. Does DSCR work for overseas properties? For asset based loans, do you know of any lenders?
Quote from @Kristen L Garner:
I second @Erik Estrada recommendation. Non-conforming products like DSCR (Debt Service Coverage Ratio), Bank Statement Loans, Asset Based Loans, etc are a great work around for DTI, taxes showing too many write offs, and also for the self employed. These products also give you the option of closing in an LLC unlike conventional, conforming loans. Depending on your scenario you can expect to get around 75% LTV on your cash out with products like DSCR.
@Sapna Kurdikar I do asset based loans, DSCR, bank statement, etc. My company only operates within the US but if you tell me where you are looking to buy overseas I can see if I can refer you to someone.
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Lender Wisconsin (#1660690), Iowa (#2189887), Rhode Island (#2189887), Alabama (#2189887), Tennessee (#2189887), Nationwide (#2189887), Washington (#MLO-103098), Oregon (#2189887), New Jersey (#2189887), North Carolina (#I-210621), Idaho (#MLO-2082189887), Colorado (#100531120), Idaho (#2189887), Texas (#2189887), Nevada (#76744), Montana (#2189887), Arizona (#1034355), South Carolina (#MLO - 2189887), Ohio (#MLO-OH.2189887), Michigan (#2189887), IL (#031.0074060), Georgia (#2189887), Connecticut (#LO-2189887), Indiana (#53742), Florida (#LO93837), and California (#CA-DFPI12189887)
- 213-880-0434
- http://kristenloans.com
- [email protected]
Thanks Kristen. I’m looking to purchase in Italy.
Quote from @Kristen L Garner:
@Sapna Kurdikar I do asset based loans, DSCR, bank statement, etc. My company only operates within the US but if you tell me where you are looking to buy overseas I can see if I can refer you to someone.
Wow Italy! Please let me know when you get that up and running and I'd love to be your first client. Which part of Italy?
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Real Estate Agent California (#02166235)
- The David Greene Team
- 310-720-1057
- [email protected]
Take a cash out loan on one of your properties here using a no doc loan and pay cash for the home in Italy.
@Sapna Kurdikar - if your W2 income is strong and you do not have any business for self income, than you are talking about high write offs on your rental properties, right? If its depreciation, that can be added back as income, besides that, if you are claiming all of your income the rental numbers should be pretty decent.
Is it one time renovation expenses that are the big write off? Often times, with a letter of explanation and sometimes receipts we can remove those as a 1 time expense.
Everyone loves to jump to Non QM higher rate, higher fee, and pre payment penalty loans but maybe there is a way to put a more creative eye on your tax returns to see if you can qualify for a conventional loan on your properties in the states...
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Lender CA (#60DBO94130), TX (#1825506), CO (#100507291), AZ (#MB-0951257), and FL (#MBR5265)
- 480-336-3737
- http://www.waincapital.com
- [email protected]
Have you checked into borrowing against your 401k? a lot of times you can take a loan and pay yourself back
A DSCR loan sounds like it would fulfill your needs as it just looks at property cash flow and a FICO score rather than tax returns, DTI, income verification, etc. Happy to discuss further if you are interested