Any advice from a lender?

[Ryan Hall]

My rental property's post-hurricane-damage repair costs (beyond insurance payout) resulted in large expense deductions and an unusually low taxable income.

The loan originator reviewed my 2019 taxes, and said that despite my excellent credit score and gross income, I would not be able to get any loan because of the low taxable income for 2019.

I would like to speak with an investor friendly bank agent about steps I can take to close on a fourplex with a traditional owner occ 5% down... or any other ideas.

I have an equity line that I am looking to put to work ASAP. Any input and/or ideas are appreciated

[Rene Owczarski]

Originally posted by @Ryan Hall:

Thanks for asking Rene. I am talking about the salesperson.

Unfortunately some sales people don't know the underwriting guidelines for the products they sell. Since typically you'll be qualified with either 2 or 3 yrs of taxes. So that the lender can see the trend on your taxes (either declining income, or increasing income), and then taking an average to smooth it out.

What it sounds like they're trying to do is give you an implied denial without sending it to underwriting. Where the underwriter would give you either a conditional approval  (pending additional docs), or a hard decline (and then you'd get a letter with the decline reason).