I currently own a 1938 farm home with 11 acres that was purchased back in October 2017 for $405k but was appraised at $485k, I currently owe $395k. My current DTI is hovering around 35-40% but I have began to rent my acreage, barn, and shop out for $2,000 per month to some cattle/goat farmers with a 2 year contract. I currently reside in the primary residence. Bigger convential banks like U.S said they might be able to do it because of the contract and smaller banks such as CC's said that they wouldn't.
Does anyone have any suggestions for me on how to approach getting a HELOC for my primary residence while renting out portions of my land to offset my DTI? I'm not too familiar on how much that would swing the DTI.
Investor · Ocala, FL · Member since 2018 · 144 posts · 101 votes
7y
If you can document that extra income, you should be okay, but only the bank is going to be able to answer that for you. I would go see several lenders with all of the documentation sorted out and organized, then just present it to them. I think you'll find that lenders can be dramatically different from one another, especially when comparing national banks to local banks and credit unions.
I would say visit a couple more banks, be forthcoming with your situation, and see what they say. I've had the most success getting HELOCs with local credit unions. An associate of mine has an unusual situation and had difficulty getting a decent HELOC until he talked to one local credit union who gave him a large line.