No W2 applying for refinance
I have negotiated with several banks and they won’t cash out refinance a duplex I bought in my name and have owned for 7 years since I don’t have a W2 job since I got laid off due to the pandemic. The property was appraised at $400k and I need the cash due to my situation. Rent collected every month is $2,200 for both units and I want to use the equity I’ve accrued. Help! by jeffcovey710 from Discovery Bay, California. Jan 5th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
The traditional loan market is required by law for you to prove, document, and verify sufficient income to safely afford a payment. Next, lenders look at risk. No job, wanting to pull equity to live on? Not going to find many takers for that. Sorry. As it appears to be a rental you do not live in, if you also owe a primary home, there is a possible rental property loan that you might be able to get. You don't have to prove income, and it works by the rent simply being higher than the mortgage payment. It is called a DSCR loan. You can find more information on this type of loan on my website at https://joemetzler.com/no-doc-loans/ Cambria Mortgage, NMLS 274132. I lend only in MN, WI, IA, ND, SD. NMLS 274132
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Traditional Conventional mortgage (typically called Conforming loans must meet certain criteria in order to be sold into the secondary market. One of these requirements is showing the borrower complies with the ATR requirements. Ability To Repay (ATR) is just as it sounds, there is a regular occurring source of income (or cash flow) to support your monthly debt obligations including the mortgage payment on the new loan. As Joe indicated, there are non-traditional loan programs that may work for you with an investment property. DSCR (Debt Service Coverage Ratio is a loan that relies on the income of an investment property to service the debt of the property. Most banks will NEVER offer this product type. You will need a Mortgage Broker for this. Reach out to me and lets see what we can get done for you.Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, MO, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000 - OR - 480-695-9300
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