Looking for Lender Recommendations (High DTI, Multi-Unit, HELOC)

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Looking for Lender Recommendations (High DTI, Multi-Unit, HELOC)

Andre Lai
Member since 2025 · 8 posts · 7 votes

Hey everyone, hoping to get some lender recommendations or advice based on my current situation. Appreciate any insight or contacts:

  • I own a fully permitted triplex in San Jose (converted from a single-family home less than 1.5 years ago)

  • Current appraised value: $1.45M (Redfin estimate $1.65M)

  • Mortgage balance: $1.01M at 7.5% interest

  • DTI is high (around 88%) due to the mortgage, though I have rental income that helps offset

    If counted, rental income would bring down my DTI to 58%

  • Rental income hasn’t been on two years of tax returns yet

Goals:

  • Ideally looking for a HELOC to consolidate high-interest debt and bridge into my next home purchase (I'll be selling this property in order to buy this next primary)

  • Open to DSCR cash-out refi, but wondering if lenders allow DSCR products when I still live in one unit of the triplex

  • Exploring private lending or creative options if traditional lenders can't work with my DTI

If anyone has lender suggestions, brokers, or has been through a similar scenario, I’d appreciate the help.

Thanks in advance!

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    1y
    Quote from @Ty Coutts:

    Hey Andre – really appreciate how clearly you laid out your scenario. That triplex in San Jose gives you a strong base to work from, even with a high DTI on paper.

    You're at an interesting crossroads where creative and investor-focused financing can really shine. Here’s a breakdown with some strategic direction based on what you shared:

    Refi & HELOC Strategy – Tailored to Your Goals

    1. DSCR Cash-Out Refi (Non-QM Path)

    Good fit if your property cash flows well and you're looking to pull out equity without DTI getting in the way. 

    Some DSCR lenders do allow partial owner-occupancy in 2–4 unit properties, but many don't—so you'll need a broker/lender who knows which ones to approach.

    This could be a strong move if:

    • You plan to hold for another 6–12 months.

    • The cash-out could wipe high-interest debt and serve as bridge funds for your next purchase.

    2. HELOC on 3-Unit – Tougher, but Not Impossible

    Most banks restrict HELOCs to 1–2 unit properties, but Bay Area credit unions or portfolio lenders may still play ball.
    Start with: Star One, Meriwest, Provident Credit Union, and Technology Credit Union – they sometimes allow HELOCs on multi-family properties or unique structures if you’re a member or qualify locally.

    3. Private/Bridge Lending

    Fast and flexible, especially since you're planning to sell this property soon.
    Expect:

    • Higher rates (8–12%)

    • Interest-only terms

    • Short durations (6–24 months)

    But a bridge loan could solve everything short term: pay off high-interest debt, avoid tight DTI rules, and give you time to line up your next purchase.

    Recommendations

    Without naming individuals here, I’d suggest:

    • Look for mortgage brokers with DSCR/non-QM experience, especially those active in California markets.

    • Reach out to local Bay Area investors in the forums or through REI meetups who've recently done similar deals—many have lender contacts they're happy to share.

    Pro Tip:

    Prepare a simple one-pager with:

    • Property value + income

    • Mortgage balance

    • Your goals (cash-out or HELOC, timeline to sell, next buy)

    • Current occupancy status

    This helps lenders give you a fast, accurate response on what’s possible.

    Let me know if you’d like help structuring your refinance options or even reviewing quotes—this kind of scenario is right in the wheelhouse of what I help investors navigate. You’re in a strong position—you just need the right lending fit.

    Cheers and good luck on the next step, Andre!


     Ty,
    You did a great job on your analysis!
    Mike

    0Reply
  • LaMancha Sims
    Lender · Fayetteville, GA · Member since 2019 · 241 posts · 41 votes
    1y

    Hi Andre, Lender Here I Would Love To Connect With You To Further Discuss Your Options.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Andre Lai:

    Hey everyone, hoping to get some lender recommendations or advice based on my current situation. Appreciate any insight or contacts:

    • I own a fully permitted triplex in San Jose (converted from a single-family home less than 1.5 years ago)

    • Current appraised value: $1.45M (Redfin estimate $1.65M)

    • Mortgage balance: $1.01M at 7.5% interest

    • DTI is high (around 88%) due to the mortgage, though I have rental income that helps offset

      If counted, rental income would bring down my DTI to 58%

    • Rental income hasn’t been on two years of tax returns yet

    Goals:

    • Ideally looking for a HELOC to consolidate high-interest debt and bridge into my next home purchase (I'll be selling this property in order to buy this next primary)

    • Open to DSCR cash-out refi, but wondering if lenders allow DSCR products when I still live in one unit of the triplex

    • Exploring private lending or creative options if traditional lenders can't work with my DTI

    If anyone has lender suggestions, brokers, or has been through a similar scenario, I’d appreciate the help.

    Thanks in advance!


     Look to bring in a partner as if its worth 1.45M you are most likely not going to find a 2nd position loan on the property as most go to 60-70% max. If it were me, I would sell this property. 

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y

    It sounds like you might need a co-borrower to help you qualify for the loan. Typically most lenders want to see a 46.99% Back end DTI (all monthly credit expenses + housing) and 43-45% front end (mortgage only)

    If this is truly a rental property, you might want to consider a DSCR loan after moving out and leasing out your unit. You may need to update your address on your DL/ID as well. If this is your strategy then you can avoid the DTI requirement and qualify based on the rents covering the full PITI.

    [email protected]818-269-7983
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  • Wilson Lau
    Real Estate Agent · San Jose, CA · Member since 2023 · 182 posts · 104 votes
    1y

    @Andre Lai I am currently working with a client with high DTI and 2 of my lenders have programs that can help. I'll DM you to learn more about your specific needs/situation.

    0Reply
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