All Forum Posts by: Burke McArthur
Burke McArthur has started 0 posts and replied 2 times.
Post: 2nd Lien Mortgages on Rental Properties - Advice
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I would start with all your local or regional credit unions. They are typically the only ones that will do it (but only some). I live in Utah and America First Credit Union will do Heloc's or second home mortgages on investment properties.
Post: Future rental income included in DTI?
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On a conventional investment loan underwriters will allow for the debt to be offset by the rents collected. In most cases, if 75% of the FMV of rent is greater than the mortgage, then the debt will be offset completely by the rents to be collected. If the FMV of the rent is less than 75% of the mortgage payment it would ratably be adjusted.
This is only the case on an investment property loan. Some investors will try to do a second home loan or a primary home loan. These type of loans do not allow for mortgage offset of rents.
A commercial loan or a debt service coverage loan will we underwritten based on the fundamentals of the deal. These typically have a little bit higher interest rate but they do not use DTI to qualify.
Hope this helps