All Forum Posts by: Mateusz Sokol

@Matt Devincenzo @Chris Mason

Thanks for the information guys. I can't believe I haven't heard of this before. It's kind of odd that I got approved for 2 mortgages while living rent free but I can't refinance the one property through the same bank. So much for sacrificing living at home to try to get ahead in the real estate game. Since I'm planning on doing a BRRRR in the near future would you guys suggest I sign a "lease" with my parents showing I pay a couple hundred dollars a month and just have them hand it right back to me?

Thanks for all the information guys! I wish I did more research first before thinking a big bank like Wells Fargo would be my best option. I spoke to a local credit union who I financed my car through and told them everything and they said I should be able to refinance through them without a problem.

@David M.

Well Wells Fargo set the appraisal up for me. I assumed it was just how things worked since this is my first refinance but I learned my lesson and hopefully a local bank lets me refinance the property so I never have to do business with Wells Fargo again

@Eric Johnson

Yeah I didn’t think I’d have any issues with Wells Fargo but it sure is a lesson learned for me

@Paul Defngin

Definitely not what I wanted to hear especially since I plan I'm doing a BRRRR sometime in the beginning of 2021 and I don't want to get screwed if I can't refinance that property. The property that I tried to refinance I've had for a little over 4 years and the other property which is a duplex I've had for a couple of months

@Frank Hinck

Thanks for the input! I will absolutely call all the local banks I can get in contact with today

Hey BiggerPockets community! I’m an investor in Philly with 2 rental properties (3 units). I have a mortgage through Wells Fargo for one of the properties and I’m going through them to refinance that property. The property appraised for 150k (25k more than what I paid for it) I paid the refinancing fees and I paid an appraiser all totaling about $800. Wells Fargo called me and told me that they can’t refinance my property because since I live with family and don’t own the property I live in or pay rent they can’t count my rental income as income. (Both properties gross 34k yearly rent and cash flow positive). They said my debt to income ratio is too high. I feel like me living at home and not paying rent should help me in this situation, not hurt me. Is there anything I can do about this or am I out of the $800 I paid for all of this? Thanks in advance!

Hey Jonathan! I’m an investor in Philly with 2 rental properties (3 units). I have a mortgage through Wells Fargo for one of the properties and I’m going through them to refinance that property. The property appraised for 150k (25k more than what I paid for it) I paid the refinancing fees and I paid an appraiser all totaling about $800. Wells Fargo called me and told me that they can’t refinance my property because since I live at home and don’t own the property I live in or pay rent they can’t count my rental income as income. (Both properties gross 34k yearly rent and cash flow positive). They said my debt to income ratio is too high. I feel like me living at home and not paying rent should help me in this situation, not hurt me. Is there anything I can do about this or am I out of the $800 I paid for all of this? Thanks in advance!