Will personal DTI impact underwriting of commercial loan for 6-units multifamily

[Zhenyang Jin]

Hi all,

I under contracted one 6 units multifamily in Bay Area and doing commercial loan with Chase. 

The financial of property is good:

DSCR = 1.3; LTV = 45%;

Both my liquidity and net worth passes Chase's test. FICO: 800. Meanwhile, I have 10 units management experience. 

However, due to keep purchasing real estate, my DTI is high and close to 50%. Chase told me that they will focus mainly on the property's financial and borrower's net worth and liquidity. Regarding borrow's DTI, Chase thinks that this item is not that important.

I wonder will my high DTI impact the loan underwriting?

Regards, Clark

[Brittany Minocchi]

If you are doing the loan with Chase and they're telling you they don't focus heavily on DTI, I would take their word for it. Each lender can use their own methods of qualification on commercial properties, and most look mostly at the asset (with the exception of your FICO, experience level and reserves).