Strategies Real Estate Investors Use to Beat DTI Limitations

[Julian Sanchez]

hello BP Don't wanna post here the entire answer that chat GPT gave me but instead ask those here with an existing SFH portfolio how have you personally gone around Debt to income limitations?

🔵 For Residential (1-4 units, financed personally):
Debt-to-Income (DTI) ratio is critical.

• Lenders (especially banks, Fannie Mae, Freddie Mac) will often cap allowable DTI at around 43%-50%.

• If an investor's personal DTI is too high, even if the property cash flows, they can get declined for financing or be forced into worse terms (higher rates, larger down payments).

• Every mortgage they personally guarantee adds to their DTI burden.

Result: Their growth hits a ceiling fast unless they pivot to commercial lending, partnerships, or creative financing.

[Chris Seveney]

Quote from @Julian Sanchez:

hello BP Don't wanna post here the entire answer that chat GPT gave me but instead ask those here with an existing SFH portfolio how have you personally gone around Debt to income limitations?

🔵 For Residential (1-4 units, financed personally):
Debt-to-Income (DTI) ratio is critical.

• Lenders (especially banks, Fannie Mae, Freddie Mac) will often cap allowable DTI at around 43%-50%.

• If an investor's personal DTI is too high, even if the property cash flows, they can get declined for financing or be forced into worse terms (higher rates, larger down payments).

• Every mortgage they personally guarantee adds to their DTI burden.

Result: Their growth hits a ceiling fast unless they pivot to commercial lending, partnerships, or creative financing.

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