Keeping my DTI low with seller financing

[Craig Cyr]

We currently have one rental property and looking at building a primary home. One option that a local landowner has shared was seller financing the land. We would then take out a for the remainder. I am not a W2 employee so constantly limited by my DTI when it comes to bank lending even though I am savvy with saving, house hacking, etc to keep my cost of living down.

If we were to seller finance the land then take out a home equity(our rental has great equity). How can we keep our DTI low and maximizing our buying power? Will the banks see the seller financing debt when calculating our DTI for the home equity? The seller of the land is flexible with the raw land financing terms.

Any tips from you savvy folks?

Thanks!

Craig from Vermont!