Home Refinance while flipping multiple houses... DTI issue

[Zachary Anderson]

Just completed a large remodel on my primary residence ($90k in) with the goal of refinancing to consolidate some personal debt and pull some additional cash for other real estate related projects, BUT ran into a road block with a lender. I was told that my two ongoing flip projects (under my LLC with a partner) would be included as debt in my DTI ratio and therefore wouldn’t qualify for my jumbo conventional cash out refi option (seeking $540k note). The bank was going to require 100% of PITI to be counted in the ratio, even if prepaid as part of the loan for the year in which we intended to complete the flips. This doesn’t make sense to me, but I am a novice at this. I was hoping for some suggestions on how to go about this refi and whether this is “the norm” or unusual. How does anyone refinance property if they are in the flipping business and these are “normal” terms? Also, if these deals are portfolio funded or private notes... how do they show up in the underwriting process with a bank? My searches don’t reveal any connection with me individually, except that these properties are owned by my LLC and our LLC docs are public domain. I hope this doesn’t come across as me being sneaky or deceitful, but looking for any assistance or direction. I don’t really want to put my business on hold to refi my home, but at this point that looks like my only option. Please help!