DTI too high
I can't seem to qualify for mortgages and HELOCS. They say that my DTI is too high. I currently have $12k in mortgages and they are all covered with rental income. I have a cash flow of about 15% due to house hacking. I have a stable W2 job as well. When I compute for my DTI I get 53%. How do you compute if you have multiple properties? I claim all my rents and income from tax forms by Omar127 from Fort Lauderdale, Florida. Dec 6th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
When calculating rental properties, we don't use straight rent. We look at your Federal Tax form Schedule E. We look at what the property brought in (line 3), subtract out what you claimed for expenses, and use the bottom line after that for income. So if you have high write offs, it can cause problems with your Debt-to-Income Ratio. Any Loan Officer worth working with could and should have gone over with you what the problem is other than just saying your debt ratio is too high. I lend in WI, MN, IA, ND, SD. Find me at Wi-MortgageBroker.com/quick-quote | Cambria Mortgage | NMLS 274132
Barclay Butler (Barclay)
#83 ranked lender in Illinois - 89 contributions
What type of property are you trying to buy? If it is an investment property we can do No Doc loans. If it is owner occupied you can go up to a 56.99% debt ratio with FHA, and 50% with a conventional loan. I lend in CA, FL, IL, GA, NC, SC, & TN for residential loans. We can go down to 500 scores for VA & FHA. Barclay Butler. NMLS 225269.www.barclaybutlerfinancial.com
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