what qualifies you for a commercial loan?

Question

I recently talked with a mortgage broker and me and my wife didn't qualify for a loan on  an investment property. I'm honestly surprised, right now our only debt payment is a 857 mortgage, no car payment no student loans no credit card debt, and good credit 740's. she doesn't make just a lot (41k a year) but with the 857 mortage payment, her debt to income shouldn't be much over 25%. Would we not qualify for a 55k loan?

Ko Kashiwagi · Answer

Did they give you any details on why you didn't qualify? There's many factors other than DTI on a conventional financing. If you don't qualify for conventional, non-QM or DSCR may be an option for you assuming good credit.

Erik Estrada · Answer

You can get a DSCR loan with a $55k minimum as long as the property value is at least $75k. Not tax returns needed to qualify

Dave Skow · Answer

@John Currey- are you trying to buy a resedential investment property or a  commercial property ?  ( commercial property is  >  4 unit or a business  type property ) .....if you are trying to buy a rental home ...with that  income / debt / credit profile  and a  large enought down payment - it appears qualifying should be OK

Tom S. · Answer

@John Currey  The $55k loan amount could definitely be an issue.  What was the specific reason for the loan denial?

Robin Simon · Answer

When you say "commercial loan" an you clarify a bit more?  Is this a Single Family Rental or an actual commercial real estate property (office, retail etc.)?  Are you refinancing or purchasing?

Depending on the more info, one issue is the loan size - $55,000 is going to be below many (almost all) lenders minimums right now for mortgage loans on investment properties

what qualifies you for a commercial loan?

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