All Forum Posts by: Lacey S.

Thank you for all of the feedback! It seems I need to shop around more for the mortgage, I will do that. There is a mortgage broker who did my refi I can try and also a state credit union where I can get membership that might be more flexible.

@Sean Grapevinethis is basically how he explained it to me, thank you. He said I could use 75% of the rental income IF it was already rented, so it seems this form is the way to go for something that isn't rented. Thank you!

@Jedd Braunwarth thank you! I don't really want to get another job...I have considered using my current savings to pay down my mortgage principle, this is certainly an option but one that will significantly delay my first rental purchase.

@Sean Pincus thank you for the feedback. If this isn't looked at, why did the bank tell me that I couldn't get a loan for an investment property because my DTI is too high? Are you saying if I first setup an LLC to buy the property that is one way I can get a loan as my DTI will then not be looked at? I don't currently have an LLC setup because this would be my first property, but I had looked at doing so and it was recommended to my by an investor friend too. thanks!

I have been looking to buy my first buy and hold rental for about 18 months. I have enough cash on hand for a 20-25% downpayment and a contingency fund. I have an area and investment strategy in mind but when I went to get pre-approval for a loan I hit a wall - the local lender I approached told me that my DTI is too high.

I have NO credit card debt, car loan or short term debt. I have a mortgage on my primary home but it’s not huge (~115k, recently refinanced for better rate). I have a very high student loan balance (~90k) but the payment is low because I’m on income based repayment. I do not want to pay my loans off early because I am on track for them to be forgiven (through a program based on my employment field) in four years, which represents a huge financial boon for me.

The lender told me that Fannie/Freddie guidelines recently changed regarding student loans for DTI calculations. They no longer consider the payment on amount but now consider 1% of the total balance, so though my payment is only 380/mo, he has to count 900 against me.

Aside from bringing in a partner or choosing a more exotic funding route (neither of which are avenues I want to pursue), what can I do? If I shop around to other banks, is it possible that I can find one that will accept me? I would imagine most lend to Fannie/Freddie guidelines…

Thank you for your help!