All Forum Posts by: Pete Storseth

Credit score 710. DTI high. Income low.

Hey guys, here's my question. I'm trying to lower my DTI by paying off one of my loans early and another credit card. But I still have two cards left I cant pay off yet. I will be working towards increasing my income and paying them off in coming months, but may be able to time everything right to get a loan sooner than later. I'm not working with conventional banks, I'm working with a smaller chain that I can still get a 0% down payment and low interest rates.

I want to know if my credit will take too much of a hit to open a new 0%APR card and use the free introductory transfer to combine the two cards onto the new one, effectively reducing the two payments a month to one, leaving me with 3 zero balances, lowering DTI. Then, two months later applying for the loan.

Problem, if course, is that would be two hard inquiries in two months. Is this a bad idea? Is it wiser to just see if I can get one the cc companies to waive the transfer fee and NOT open a new account? Problem with that is that the 0%APR on them expires later this year.

@Michael Vu

I heard somewhere you can add specific contingencies where some of the big ticket items can either be used to lower the purchase price or even be put into the purchase agreement as warranty items. Examples- if the roof is more than half its life, they may either lower the purchase price, make an insurance claim to replace the roof before closing, or pay for it themselves well after selling via warranty clause. Or if the HVAC is older, same three options- lower price, replace themselves before closing, or be liable for the repairs when something comes up. Just a thought.

@Jade Adair

Go to small local banks. Many can bend the rules cuz they make them. One of my lenders made a connection between my most recent jobs, despite a six month gap. Call around.

@Greg H.

Good to know.

@Odie Ayaga

ARV

Do you guys always refinance into conventional banks? My HML allows me to cash out refi after 90 days if there's a lease to do it again. But the refi is into a higher interest amortized 30 yr loan.

Once I get to 3 rentals, fees and rates are lowered and consolidated into a portfolio loan.

If I have a portfolio loan with 5 SFHs, you think Fannie will buy that?

@Michael Ablan

If I'm pidgeon-holed into dealing exclusively with hard money, but found a lender and a deal where the numbers still work, should I still refi with the hml?

Using a bridge loan makes sense obviously, and then refinancing to get the cash back in such a short time frame (92 days best case), seems pretty good. But if i still dont qualify for conventional loan and conventional banks, and I wanna do this 2 to 4 times a year, why not just pay the higher interest until I can have a portfolio of rentals and landlord experience that regular banks will respect? Dont know if that sentence was too long....

@Mailei Maloa

Great question!

@Kristian Conway

Good find, good luck, you got this!

@Odie Ayaga

Santa gave you the money... lol

We really need to hop on a call!