All Forum Posts by: Stacy Kiley

@Stephanie P. Thank you for taking the time to give such a thorough response! Those are good points and most of that makes sense to me but can you clarify what you mean "if you put the bigger house into an LLC, the debt won't count against your DTI?" Also, wouldn't I need a commercial loan for a property held in an LLC and for property held as a LLC, does that mean the lender just goes off the financials of the property?

Thank you @Chris Mason and @Caleb Heimsoth for all your help! 

One last question that pertains is how a HELOC is figured into the DTI formula... for qualifying purposes, do lenders use the maximum payment and interest rate (ARM) that would be possible on the loan to qualify a borrower?

@Jerry Padilla

I think I understand DTI, but how do savings affect your qualification amount?

@Jerry Padilla, what do you think?

 So if I understand you correctly, If my business income is 45k and my rental income is 18k...

45,000 + 18,000 = 63,000 

63,000 x .40 = 25,200

So my maximum PITI (principal, interest, tax, insurance) payments on all my properties can't exceed $25,200 per year? And if the loan is an adjustable rate as in a HELOC, do they use the maximum interest rate to determine what a borrower is qualified to borrow?

@Chris Mason

Thanks for the referral!

Do you know the formula that's used to prequalify a borrower? Being self employed, I have a lot of control over how much I earn in a year. If I wanted to qualify for a bigger mortgage, I could work more or plan to take capital gains to achieve that income level. 

 I plan to get prequalified but I'd like to know for my own knowledge how they determine the maximum loan amount. I can't imagine it's too difficult to teach. 

Hey BP community,

I'd like to get at least 1 mortgage for my 2 SF homes in Cleveland so I can buy more property. They are currently held free and cashflow at about 1500 per month. One is worth about 65k, the other 100k. The rest of my income (about 45k adjusted gross) comes from self employment. I carry no debts other than the Heloc on my primary. I have good credit.

How do lenders decide how much they will lend? Are income sources like capital gains excluded from qualifying for a mortgage? Any advice or lender referrals would be greatly appreciated! Thanks in advance.

Can anyone tell me if there is a Pay or Quit form that is specific to Ohio and what is the proper procedure to serve the notice? Thanks!

Thank you @Natalie Kolodij and @Lance Lvovsky. I appreciate the advice.

@Ashish Acharya, It's held in my personal name but that makes sense for an entity. Thank you.