Commercial loan for primary residence?

[Frank Macias]

Hello all,

Looking for a creative way to finance a new construction of a primary residence. We plan on living in the home but also building an attached mother in law suite and a detached garage both of which we would rent out for income. 

I currently own a SFH and a duplex in which we live in 1/2 of the duplex. We have a lot of equity in the properties as well as the vacant lot we own but my DTI is too high and so I don't qualify for a conventional mortgage. Any suggestions? Thanks for your time and responses.

Frank

[Albert Bui]

Quote from @Frank Macias:

Hello all,

Looking for a creative way to finance a new construction of a primary residence. We plan on living in the home but also building an attached mother in law suite and a detached garage both of which we would rent out for income. 

I currently own a SFH and a duplex in which we live in 1/2 of the duplex. We have a lot of equity in the properties as well as the vacant lot we own but my DTI is too high and so I don't qualify for a conventional mortgage. Any suggestions? Thanks for your time and responses.

Frank

 On this new construction of said "primary," do you already have a raw lot with permits approved ?

I take it you will be moving out of your current duplex and rent out your side of the 2 unit property is that right? This added lease agreement and income will help your DTI when qualifying for that new construction note.

You're trying to figure out how to orchestrate your DTI/debt to income such that you'll be able to qualify for a construction loan to build your house and your ADU ? We can look into this for you and give you some pointers but the best place to start would be to figure out what the current DTI is at this moment and what is needed to get the loan sizing that is large enough to encompass your entire build out on this raw lot and then work backwards to see if the income is sufficient or how to make it work.

There might be a financing solution for the above once we get a bit more information.

@Matthew Kwan @Carlos Valencia @Kin Meng Sio