Conventional Lender trouble

[John Alosio]

Greetings BP

I'm here today looking for advice regarding a property that i have under contract right now.

Currently I own 2 rental properties (both duplexes). Both with conventional mortgages... I am now ready to purchase a SFH as our primary residence.

This is a big step; after house hacking for the past 4 years, we're finally ready to branch out into our "starter home"

The situation:

Here we are, 3 weeks after getting an offer accepted on amazing property. Inspections & Appraisal completed. All looks wonderful.... NOW the underwriter is giving us hell about our DTI.

We're currently living in one unit that will be rented when we move. However the lender will not view that as income.

They are only viewing my "taxable income" based on my tax returns. Which looks like almost nothing after depreciation. A lot of MACRS  carried over from previous years.

Now I'm stuck worrying that I may lose this property. 

Can anyone advise a way to dodge lenders strict parameters? I'm looking into Non-QM loans, but they appear to have similar DTI requirement.

Need Help! Don't want this house to slip away!

Thank you all in advance!

[David Wild]

We are in the process of buying a condo and were running into the same issuse when trying to get pre qualified. We didn't meet the DTI. We ended up getting pre-qualified through a private lender that doesn't use DTI or look at your tax returns. No employment or income information is required, No debt to income (DTI) requirements. This is a asset qualifier loan, it sounds like you may have enough assets to qualify? So far they have been great to work with and we are supposed to close on Friday. Obviously you pay for it, but I feel the rate was decent at 4.875 on a 30 year with 25 percent down. They have a 20 percent down option too. Some of the negatives are cost and it comes with a 3 year prepayment penalty, but with rates moving up I don't see refinancing it anytime soon anyway.