Trouble financing a triplex

[Gus Kazek]

Could use some help on this one.

Got an offer accepted on a triplex for 148k, looking to use the home possible mortgage from Freddie Mac to finance with 5% conventional loan. GOT DENIED.

Idk how I got denied, I have a 720 credit score, 25k student debt which I havent missed a payment for and my Debt to income ratio os 20%.

Would anyone suggest using hardmoney then trying to refinance into a convention loan later? I have about 20k to work with here.

[Brian Cole]

Lots of variables could be the reason they didn't approve it. They may have determined you were not eligible for their loan program for something like occupancy, or maybe they determined you didn't have enough credit history.
When you calculate your DTI you need to consider EVERY debt that shows up on your credit report and the proposed payment.

Also they may not be counting all of your income. If your any kind of commission or contract employee your gonna have lenders who don't want to approve it without a good long work history. Or you could make too much money based on the median income

Hard money is an option but I would make a phone call to the financial institution that denied your application in the first place. Find out what they counted for debts and income. Ask about eligibility.

If they tell you something that doesn't make sense. Ask them to explain it more.

Also make sure it's not the "Home possible Advantage" program. with the advantage you would be limited to a 1-unit property.