High DTI, but have cash

[Taylor K.]

Hey everyone, 

I am closing on a deal now that will put my DTI too high to get another conventional mortgage. But I have enough cash for a couple 20% down payments. How can I obtain more loans with my situation? Could I get a commercial loan for a property with less than 4 units? Should I pay down debt?

Thanks in advance.

By the way these are low end, low price properties. 20-30k a unit.

[Shaun Weekes]

Originally posted by @Taylor K.:

Shaun Weekes

Hi Shaun,

All the banks I have spoke too all want to see a year or two of rental history before they'll count it into my DTI. Plus it's currently vacant, but will rent for 600+ a side

I don't make a lot of money at my day job, so I don't see them wanting to give me another loan even though the duplex I am purchasing is only 42k. Any suggestions?

 Fannie Mae and Freddie Mac don't require any seasoning for a rental property.  Your bank has an OVERLAY of requiring more than one day of landlord experience so an OVERLAY is anything that a bank wants in addition to what Fannie and Freddie are asking for.  You just need to find a bank with no OVERLAY Sir.