Reported DTI at 49% : How do I qualify for another mortgage?

[Brandon Toron]

Hello,

I bought my first home in March of 2020. I am trying to figure out how to get a mortgage for an additional property. Credit score is around 750. I currently have a mortgage and some other debt that equals roughly 3375 monthly. I am renting out the top floor of the mortgaged home I bought in March for $3100. Addittionally, my W2 job grosses around 90k last 2 years. With the reported income of my W2 job, my DTI appears on paper to be in the high 40%'s.($3375:$7,500) I assume this to be a big red flag for a lender and am trying to figure out what can be done to qualify for another mortgage in my current situation. What is an effective strategy given my current situation to secure another loan? What are my options? Thankful for any help and wishing everyone a safe and happy New Year!

Kind Regards,

Brandon Toron

[Joe Hammel]

You can find lenders who lend on rental properties without using qualified money, so they don't care about DTI etc...they're looking at the rental income or potential. Interest might be 6%, but there are a lot of deals that still rock at 6%...think about it...if you have a property earning 15% ROI, that 6% isn't a big deal... then you refinance out of these deals into lower interest rate mortgages when you get in a better position. Your Local Investor Friendly Realtor should have a connection or two like this. Or Local FB investor group.