Can I get a loan with over 50% down but with high debt ratio?
Saturday, April 17th, 2010 at
1:43 pm
at asked:
I am planning to do a 1031 exchange sell one high price property and buy couple other properties.
My FICO score is around 670 but because of the number of rental properties I currently own, it puts my debt ratio to unacceptabe high to qualifiy any conventional 20% down loan. Any body knows what other loan programs out there that would easier to qualify and with what % of down.
Clinton
I am planning to do a 1031 exchange sell one high price property and buy couple other properties.
My FICO score is around 670 but because of the number of rental properties I currently own, it puts my debt ratio to unacceptabe high to qualifiy any conventional 20% down loan. Any body knows what other loan programs out there that would easier to qualify and with what % of down.
Clinton
Tagged with: 1031 Exchange • Conventional Loan • Fico Score
Filed under: Personal Finance
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Vera
How high is your dti? Automated underwriting solutions are extremely flexible today allows much higher dti ratios than the old standard 40%…especially with large downpayments. Another option is to provide leases to the properties that you are purchasing if they are currently rented. Unless you are planning to vacate them to do work, you are usually allowed to use a portion (75%) of your rental income to offset the mortgage expenses on your investment properties. You should contact a few different mortgage companies who can give you some options. With large downpayments I’m sure there are plenty of options for you.
Raymond
Many real estate investors will use no income documentation, no ratio, or stated income type loans to assist them with buying more houses because their debt ratios are high as well, even though they make enough money to cover all of their payments. These loan types may be exactly what you need to be able to finance the new homes you are looking to buy.
There are also bank statement type programs where you provide 12-24 months of bank statements to the bank and they add up the total deposits on the statements and then divide by the past specified number of months to come up with an average monthly income. This program can work well for real estate investors as well, as long as you deposit your money into your bank account.
Also, many automated underwriting engines will allow for very high debt to income ratios, especially with good credit and proof of liquid assets. This may help you to get approved even with a high debt to income ratio.
The larger the down payment you put down on the new properties the more doors you will open for yourself as well for a lender to lend money to you. The more money you have invested into a down payment, the less of a risk the loan is for a bank to make.
See the webpage listed under the sources for more information on alternative income documentation type loans.
Tyrone
Renting properties is a business and should be treated as such. The number of rental properties and the loans you have on them have no impact to your personal purchases. What matters is the income you generate from the business of which you transfer to yourself as wages. This income revenue plus that of your regular job is what’s used to determine your annual income. The ratio is based on your personal debt payments over your personal income.
Marcia
I am Mable Green and i saw your question about needing a loan,In the internet they are alot of co men out there.I decided to answer your question to prevent you being deceived.
I got a loan of $100,000 from an agency online and i was lucky not be deceived.
Contact them via email interest rate is quite affordable is simply great.they use a yahoo email account on our request because its makes contacting them easier.
Regards,
Mable
Roy
con men? I love it- These warnings against con men are so dis ingenious. They are the con men themselves. This is not a place for solicitations. Stay away from them. Truth is, this is an easy loan for anyone with decent credit. 680 and up. You can use a Stated Income loan or a No Ratio loan. Easy easy.