High DTI Home Equity Access

[David Ten]

Hello Hello,

I need to access My Equity But my DTI is High, this some information :

- My Equity is about 240K

- My Mortgage Payment = $ 1750/Month ( include everything ( PITI ))

- My W2 = $4700/month

- My Credit Score 690 (based on soft pull)

I need :

- 70K to build 4 separate bedrooms on my backyard, so I can rent it out. and generate income.

I have Debt =

- Car Loan 35K / Monthly Payment $720

- Credit Card 25K / Monthly Payment $700 ( this debt not for luxury, but to build room addition about 250 Sqft, 2 years ago)

So my total monthly payment debt + mortgage = $3170

My Taxable Income W2 only $4700

But my Family (from other country) deposit to my chase checking account about 25K ( about $2000/every month) per year.

And No, I don't have anybody can be my cosigner / co-borrower. 

I need help or I have question :

- What type of loan is fit for my situations ?

- Anyone ( all the Seniors and Masters here) can share or recommend solutions or Maybe can Help me ?

Thank You - Arrigato - Xie Xie - Terima Kasih - Gracias - TohDah - Dhanyavaad - Shukran

[Matthew Kwan]

hi David,

You can either go towards DSCR where it does not require to use your income to qualify, where it only looks at the performance based of the rental property in a metrics of ratio. Or bank statements loan where lenders would only use 12 months deposits from your bank statements an average it out to calculate the income. Both of these programs can help qualify and obtain a loan for investment properties, but the tradeoff is that these programs have slightly higher rates than conventional loans.

If you are looking for lower rates which everyone tries to, you can always consider the traditional route of conventional loan where rates are typically lower 1-1.5% but you would want to make sure if your income/credit/assets can qualify for it.

@Carlos Valencia @Albert Bui