All Forum Posts by: Jeff Chisum

Hello Everyone!

I am currently househacking in Boston in a 2-family property. I bought this property last year as an owner-occupied property with a 20% down payment, live in one unit, and rent the other unit.

I just went under contract for my second househack in a Boston suburb. It is another 2-family property. I intend to rent both units in my old househack, move to one unit in the new property, and rent the other unit. I will make a 20% down payment on the new owner-occupied property. I am looking for a lender, local credit union, or mortgage broker that can fund this deal. The best interest rate that I have found so far is 7.375%. However, my DTI ratio is slightly higher than what they can accept. They also have a high mortgage origination fee of $26K, which seems too high, given the fact that I will refinance this loan within the next two years.

My back-end DTI ratio [i.e., (old PITI + new PITI)/(Salary + 0.75(Rent from Old Property (both units) + Rent from New Property (only one unit)))] would be around 65%. My front-end DTI ratio [i.e., (New PITI)/(Salary + 0.75*(Rent from One Unit in New Property))] would be around 50%. 75% of the rent of the old property will fully cover the PITI of the old mortgage. I do not have any other debt, student loans, or credit card balance other than my first mortgage.

Do you know any mortgage broker or local credit union in the MA area that I can contact to fund the deal? Most local credit unions have lower DTI ratio limits. I would greatly appreciate any recommendations or referrals that I can connect with to assess different options for the funding. Thank you very much for your help!

@Jeff Chisum Is another lender that can help you with a vacation home loan. It will be hard to find a condo that is warrantable but there may be a couple still in the PCB area. Depending on the returns you're looking for in a STR, Destin may be a better area for you. PCB is great, but the returns are higher further west on the coast. If you decide to look around the Destin area, I have a wonderful realtor I can connect you with!