Refinance part of BRRRR

[Mark Chin]

Hi officially my first post :-). Anyone know how lenders determine the income allowed from an income producing property to determine d/i ratio ? What line on the tax returns is used, and the formula ? Also looking to buy first property all cash including renovation, but concerned about the refinance part of BRRRR since I have 3 other properties in my name. My debt to income is pretty high (48%) excluding rental income.

[Robin Simon]

Quote from @Mark Chin:

Hi officially my first post :-). Anyone know how lenders determine the income allowed from an income producing property to determine d/i ratio ? What line on the tax returns is used, and the formula ? Also looking to buy first property all cash including renovation, but concerned about the refinance part of BRRRR since I have 3 other properties in my name. My debt to income is pretty high (48%) excluding rental income.

DSCR Loans have become the preferred method for BRRRR refinances now since there is no DTI or Tax Return situation and the extension of the seasoning period for cash-out refinances by Fannie Mae for conventional to 12 months which went into effect april of this year killed the numbers for most BRRRR projects relying on conventional financing