Need help with finding financing.

3 Replies

Hey BP members, I've run into a stall. Last year I bought my first investment property, a condo that is currently leased. For my next property, I am looking for a single family that I could do some minor/medium rehab and turn it into a BRRRR.

I'm self employed, and due to how my income is reported, my lender says I can't take out any more personal loans right now. I have the down payment in cash, but that doesn't mean anything without securing financing.

I know I can do hard money, but that is pricey and since it would be my first one I'm sure I'll pay a lot of points and really high interest, and depending on how much they'd lend, not sure that I could make the numbers work, or if I even want to try that right now. Even worse, if I couldn't refi later this year, I would be stuck with a very expensive loan that would likely not be worth the trouble.

Any other suggestions?  

You don't say so I'll just ask: Have you tried other banks?  Maybe small community banks?

Did the current lender say what you would need to do to qualify for more loans?

whats the problem, high dti, not enough years of income?. if you cant get a loan now. what makes you think you will be able to refinance later?

I just used this lender last year who said this may be an issue in 2018, but I am reaching out to other lenders now to see what they say. I am co-owner of an S Corp, and right now my reported taxable income is too low for their underwriters to approve my ability to pay. My personal residence is at 85% DTI, so that's obviously working against me. My other property is just under 75% DTI. Yes of course I would not do a hard money loan unless I had a lender lined up to refi. I plan on reaching out to many banks, even if they all say no for now, at least I'll know.

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