Owner occupied vs. rentals GO!!! CALIFORNIA

6 Replies

My questions are, I'm currently at 96% debt to income with just my current pay check,and the bank tells me that since I don't have two years rental experience they don't want to use the income from the rental properties that some lenders won't use that. But if I do use the projected rental income I would be at a 53% debt to income, which is still not enough unless I put more money down I talked to a couple friends that are in real estate and some suggest that I claim that it is owner occupied and just rental all four units that the bank doesn't care once the loan is processed.what should I be worried about if I were to approach that option or are there any alternative options to this, any opinions regarding this matter help thank you

@Patrick Watters - We work with an extremely investor friendly lender that I can put you in contact with.

I'd love to give you some advice here, but I'd be doing you a dis service by not recommending you speak with them.

Send me a PM and I can give you the info if you'd like.

Thanks!

@Patrick Watters What your "friends" are suggesting is mortgage fraud, FYI.

I would strongly consider trying to find another solution through a portfolio, hard money, or private lender.

Originally posted by @Patrick Watters :

My questions are, I'm currently at 96% debt to income with just my current pay check,and the bank tells me that since I don't have two years rental experience they don't want to use the income from the rental properties that some lenders won't use that. But if I do use the projected rental income I would be at a 53% debt to income, which is still not enough unless I put more money down I talked to a couple friends that are in real estate and some suggest that I claim that it is owner occupied and just rental all four units that the bank doesn't care once the loan is processed.what should I be worried about if I were to approach that option or are there any alternative options to this, any opinions regarding this matter help thank you

 Don't commit fraud.

Also, owner occ 2-4 unit real estate is far far less generous DTI math than owner occ math, so it wouldn't work anyway.

I have lots of borrowers who can qualify for whatever they have 15% to 25% down on as an investment, who basically can't buy squat as owner occupants even with 50% down. That's how different the math is.

Originally posted by @Patrick Watters :

 Thank you Chris. So what how do you suggest I approach this because I have the 25% but they are worried about debt to income and didn't want to include the rental income .any suggestions?

Find a new lender that'll count the rental income. No landlord experience is needed, Per Fannie, but lenders are allowed to be more restrictive if they wish (it's Fannie backed, but it's still the lender's money being lent out).