Brrrr dti issue

[Jonathan Wooten]

Ok. Example time

I buy first house to house hack with traditional mortgage. Cool.

I buy 2nd house with hard money and refinance with a bank. My problem is when I would go to get it refinanced, my dti would be rediculous because the rent doesn't count as income for 2 years. 

I make 30k a year. Finance a 70k house. Put friends in to pay rent. Lets say 500 debt to my 2500 income which is 20% but school loans make it more like 950 (school credit cards new mortgage) debt to 2500 income is now almost 40% I can't add in anorthern 70k refinanced home because that would send me over the 43% dti. and since the rent from 2nd house doesn't count for 2 years, how does one beat the dti???

[Brent Coombs]

@Jonathan Wooten, your PRIMARY is supposed to appraise at much more than you bought it for, because you bought an absolute bargain, right? So, your equity in IT should allow a HELOC, so you can finance your next buy CONVENTIONALLY from day one, with your "free" ~20% deposit.

THAT'S how Brrrr works! But, if you haven't bought enough INSTANT additional equity because your deal wasn't really a "deal", you WILL be lumbered with the vagaries of HML.

Maybe try Asset-based (Commercial?) Lenders, who MAINLY base their loan amounts on a set percentage of their own appraisal value of the subject property, rather than its and your income?

(Or so I've heard). Welcome to BP. All the best...