All Forum Posts by: Debra A.

I love that you used the term "unbalanced" lol Of course your debt-to-income is unbalanced...hopefully it's leaning towards the right direction! Now a days, as lending guidelines loosen up a bit to make room for more buyers like yourself in stickier situations, debt-to-income guidelines have also followed suite. It really is hard to say, but you could possible get away with a debt-to-income ratio of 50% in some cases. That would include all of your outstanding monthly payments that show up on your credit report, including a proposed housing payment versus your total income. Obviously, being below 50% would be ideal. I would personally recommend you stay more around 36% to be safe- but that's just what I would do. Oh and CONGRATULATIONS!!! Oh, and one more thing! I know some products that will actually let you count "expected" income from a rental property...meaning an appraiser will appraise it and also give an estimate of monthly income that the property would bring in that can actually be used towards your total income. Which, would definitely help out!

Originally posted by @Olivia Umoren:
Hi Everyone,

My name is Olivia, I'm a 24 year old college grad (Penn State ‘16) and like most of my classmates I have student loans ($45,000). I am trying to prepare myself to purchase a property for househacking in the next year or two (location TBD). However with my DTI ratio being unbalanced, I think get approved for a mortgage will be difficult. So my question is for those of you with student loans (or any other significant debt) how were you able to finance your property purchase? How did you prepare yourself?

Just some additional info about me: I work a full time and part time job, I have a 6 year credit history, I’ve never missed a payment and I have a good credit score.

Thanks! Olivia

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@Devin Arrigo FHA loan is completely different than a HML. Typically a HML is very short lived and costly. In my experience, a HML is typically for fund and flips, because the money borrower is (hopefully) supposed to be paid back within a short amount of time, once you sell the house and profit. I think, personally, that an FHA loan would do you best. On another note, you may also want to consider looking at a lender ;) that has motgage products geared specifically towards real estate investors since essentially that is what you are gearing up to do. You really want to weigh your options carefully. Each program is going to carry their own guidelines for credit, income, employment history, debt-to-income and reserve requirements. It's really a lot to break down.

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Originally posted by @Stephanie P.:

@Alan Iverson

Yes, the 12 and 24 month bank statement program is for self employed.

Based on the extra explanation, an asset depletion loan may work. It's for primary residence (US Commercial only does non-owner properties) and there are plenty of other guidelines. If you need a broker in Connecticut, @Debra A. is licensed up there. New Penn has asset depletion products I think.

Best of luck

Stephanie

Thank you, Stephanie!

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All Forum Posts by: Debra A.

Debra A. has started 17 posts and replied 84 times.

Post: Trouble Getting a Mortgage

Post: Student Loans & Mortgage Approval—DTI Issues

Post: 1st Deal Advice: House-Hack with FHA or Private lending?

Post: Great borrower with 3 year work gap - getting a mortgage?