House Hacking afordability

Omaha, Nebraska
House Hacking
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House Hacking afordability

Kyle Mason
Member since 2023 · 4 posts · 1 vote

Hello,

I am a beginner real estate agent and investor. I recently bought a 4-plex conversion and had to sell it on a subject two less than a year later. The next property that I get will be a house hack that I will live in. I have one small problem I need help solving.

My question is what are my options on qualifying for a loan if the property is more than what I qualify for?

My situation: I currently can only qualify for a loan of $210k, because my subject two sale; that loan is still on my DTI ratio. I was offered a duplex for $350k two years ago but I couldn't get funding due to my DTI.

What options do have if I find a two, three, or 4-plex in the $300-$400k that is a deal?

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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
2y

@Kyle Mason

To increase your loan amount, consider strategies like increasing rental income, co-signing with a co-signer, using portfolio loans, negotiating seller financing, down payment assistance programs, paying down debt, and considering alternative loan products like DSCR loans, non-QM loans, and bridge loans. These options can help meet your DTI limits and secure a property in the $300-$400k range.

Good luck!

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  • Max Ferguson
    Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
    2y

    DSCR loan, bank statement loan, Seller finance, etc.. there are a lot of ways you can secure the property without needing input from DTI. I'm not a lender so make sure to double check, but I believe the DSCR loan will be the best bet. You could also partner on it if you absolutely need to go conventional? Lots of fun options!

    Talking to a good non-QM lender is going to be your first step. I moved out from Omaha about 4 years back, but I have a great investment agent there if you want his contact information? He would be able to point you to someone local for lending and give advice on your exact situation. 

    Good luck and let us know what you figure out!

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Kyle Mason

    To increase your loan amount, consider strategies like increasing rental income, co-signing with a co-signer, using portfolio loans, negotiating seller financing, down payment assistance programs, paying down debt, and considering alternative loan products like DSCR loans, non-QM loans, and bridge loans. These options can help meet your DTI limits and secure a property in the $300-$400k range.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    1Reply
  • Kyle Mason
    OP
    Member since 2023 · 4 posts · 1 vote
    2y

    Thank you

    0Reply
  • Masyn Grant Barney
    Real Estate Agent · Spanish Fork, UT · Member since 2020 · 79 posts · 56 votes
    2y

    @Kyle Mason, did you use a legit escrow specialist for your sale? If so, most lenders can remove that debt off your DTI after 12 payments have been made.

    I recently had to do this for a property I bought with a partner. The lender just needed to see payments being made for 12 months out of a bank account that was not mine. Essentially saying that while I am technically responsible for the debt, history shows I am not paying it. 

    LMK if you have questions and I am happy to connect you with a lender who could do this for you. 

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