Bank does not report mortgage, could I get another?

Question

Hi there everyone. I recently completed my first investment deal with in-house financing through my bank. Recently I found out they do not report to the credit bureaus, so my question is in theory could I get another mortgage from another lender for a deal since it doesn’t show up on my credit report?

George Despotopoulos · Answer

@Jeff George if your DTI is a concern then going the non-bank route may be an option. Non-bank lenders underwrite to the property's cash-flow (and most don't have an income requirement at all, it just plays a role in the rate you receive) and they do not look @ your tax returns, personal income/DTI. The rates vary and depend on a few factors like credit score, LTV, property type, market, etc but it's not unheard of to be in the 5.25% - 6.5% range for a 30 yr fixed rate.

Chris Szepessy · Answer

I have two owner financed mortgages. Neither one shows up on my credit report, but even if I didn't disclose it on an application, they'd see my tax returns and notice it then.

Priscilla Swantner · Answer

@Jeff George your tax returns will sell you out. I have portfolio loans from banks who do not report as well.

Tom S. · Answer

@Jeff George  In addition to disclosing it on the mortgage application, typically the new lender will request bank statements and your tax returns, and the investment property (rental) will also show there on Sch E.

Kyle J. · Answer

@Jeff George Even if the mortgage doesn’t show up on your credit report, when you apply for the next mortgage the lender will likely have you fill out a form called “Schedule of Real Estate Owned”. On that form you’ll need to list the address of any property you own, along with the mortgage amount, taxes, insurance, any rental income you receive, etc.

So they’d find out about it one way or the other. The good news though is not every loan or lender requires you to have two years of landlord experience before your rental income can be counted.

Jeff George · Answer

@Jaysen Medhurst I’m talking about on another property. My DTI is the issue on reviving another mortgage since I don’t have two years of landlord experience.

Todd Rasmussen · Answer

@Jeff George

No, even if you decided to commit fraud on your application; the bank would get the title report from the title company that would show your bank's lien on the property.

Caleb Heimsoth · Answer

@Jeff George you still need to disclose that current mortgage and if you don’t that’s mortgage fraud

Jaysen Medhurst · Answer

Are you asking about getting a second mortgage on the same property, @Jeff George? Or a mortgage on another property altogether? If the latter, why would the reporting matter at all?

Bank does not report mortgage, could I get another?

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