DTI stopped my refinance

[Thomas Klein]

Hey all,

Hope everyone is doing well. I wanted some feedback on a great problem to have. (I think...)

I thought I had good rentals. Haha 

The credit union I use (Space Coast Credit Union) told me my DTI was too high in addition I showed losses on my previous 2 years of taxes on my rental properties.

So I paid off a rental property that only had a balance of $40,000 ($1333 PITI a month)( Rent $2000)(Value $340,000).

I went back to the credit union after paying the $40,000 balance off and they said no, again. 

They said I I needed to wait until I didn’t show so much losses on my tax returns from my four rental houses. (In those two years of returns, I had bought and rehabbed two properties so I did have valid deductions to write off).

I wanted to refinance my recent purchase to pay back the HELOCs I used to purchase and rehab the property. 

The two HELOCs total $238,000 interest only adjustable rate. (Currently 4%) ($790 a month)

After getting told I didn't qualify due to my DTI and tax returns from the credit union, I went to a Mortgage Broker.

The broker stated they didn’t see a problem with getting me qualified with conventional financing.  

I don't understand how two loan originators can have two different conclusions. 

Anything anyone could suggest would be amazing.  

 I just dont want my credit to keep getting pulled for these lenders to keep telling me no.

I have called dozens of credit unions around here and they will not review anything, until I have applied and had my credit pulled.

I really am considering just letting Visio (private money lender) have the refinance because it's not going to be reported on my personal credit. (Then I won't have any more DTI future problems)

I would be paying 5.625% with Visio vs 4% conventional on $262,000. 

It would not cash flow that great by using the 5.6255% loan ($100), but I would be able to use that $262,000 to pay back my $238,000 HELOC and move on from there.

I do not understand how real estate investors keep repeating the BRRRR.

Between all four houses last year the taxes and insurance payments were $32,000. (My rents did cover all that)

I have really considered just selling and getting out of the Fort Lauderdale market and moving to long distance investing. I realize that rents will increase, but non homestead properties in Fort Lauderdale taxes increase every year up to I think 10%. Property insurance here as well is only increasing, too. 
I would love your feed back and long forward to talking more. Thank you everyone for taking their time to read this!!

[Matt Devincenzo]

Use the mortgage broker to find your loan. They'll do a single pull, and they know who to shop the loan to in the first place. Your CU is saying no because of their own overlays most likely, and the broker will know lenders that don't have any or very few overlays. There shouldn't be any issue qualifying for the refi using the in place leases even if they're not on tax returns for two years yet.