Need a cash out refi that will count my rental income.

[Matthew Ware]

Hello Bigger pockets. I'm attempting to tap into the equity in one of my investment homes in order to buy a primary residence. I'm looking for a 30 year fixed cashout refi on a property that is owned outright. My sole source of income is rents received while my co-borrower is on a W-2. The bank that I have talked to (Chase) will not count any of my income because I do not have a 2 year history of rental tax returns, so we have run into debt to income issues. The house I'm borrowing on is worth about 600k and I want to pull 300k out. Chase quoted me a rate of 4.75, for a 30 year fixed, because it's a rental property, but then brought up the income issue at the end of our long conversation. Grrr. Any help or suggestions would be appreciated. Thanks.  

[Matthew Ware]

Thanks all for the replies. This money game is confounding and doesn't seem to operate on common sense. Am I missing something? I'm astounded at the value they place on W2 income. Since I filed W2 last year, I could go get a job in my field and quit or get fired in a month after showing my pay stubs, but rental income which I am much more invested in maintaining because it's tied to my asset is counted as zero. If I don't pay back a 300k loan the bank gets a nice 600k property in San Diego. If I were issuing the loan I think I'd want me to default. It just seems silly to me. Can anyone suggest a mortgage broker or private individual who can help me navigate this? A local credit union appears willing to give me a conventional loan at a competitive rate on a purchase, but I'd rather not drain my savings to come up with 20 percent down and since my investment property is out of state they won't do a cash out refi on it. You folks who have mastered the lending end of things have my ultimate respect. Thanks again.