creative ways to meet the bank's DTI requirements

Investor · Sandy, UT · Member since 2012 · 71 posts · 29 votes

I'm looking for creative ways to get financing for my 3rd rental property. Even though I have tons of cash flow and my only debt expenses are the mortgages, I am just shy of qualifying for a 3rd mortgage on my own.

Have you ever brought on a partner just to get your combined income to meet the DTI qualifications necessary to get the conventional loan?

What other methods have you used to meet the requirements for purchasing another property?

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
just make sure creative is totally legal.. they are putting those who defrauded banks on loan applications in Jail these days... along with the lenders or mortgage originators who wrote the deals.
credit partner will work.
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Chris Simmons
Real Estate Agent · Owasso, OK · Member since 2014 · 517 posts · 400 votes
11y
More info is needed. Are you dealing with a portfolio lender or a consumer mortgage product type lender? A specific bank or a broker that can shop you around?
What input has the banker given you? The simple answer is that if you can't qualify due to a DTI ratio that is too high, then regardless of your "tons of cashflow" comment, you simply don't have enough income to cover the debt. Either legally and ethically show a higher income or reduce/restructure your debt.
If you can refi the current properties to give you a lower monthly payment, perhaps that will give you some room for a third.
Since you bring up DTI, I assume you are not talking to a commercial portfolio lender although I can't know for sure as they could be evaluating your creditworthiness as a guarantor.
Call around and talk to others. If they all agree and tell you no....then guess what....It's not them, it's you.
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