Lenders with Most Flexible Debt to Income Guidelines

[David Rutledge]

Hi Everyone,

I was hoping to get some advice on any lenders I could talk to that have flexible debt to income ratios for new mortgages.

My wife and I have bought multiple investment properties over the past six years. 5 of them have been on my tax returns for 4 years all showing income so lenders give us a credit for those. The issue is the 2 properties we recently purchased out of state that we use as airbnbs. They have not been on our tax returns so we do not get credit for that income and they count as debt.

My wife and I are now looking to start a family and are looking to purchase our own home here in Orange County CA. We are looking in the 500K to 600K range. We both have excellent credit, we have 5% - 10% to put down and we both have W2 jobs with very stable and steady income. Our total mortgage payments from the two properties we recently purchased is about 2100K per month.

I have worked out that with those liabilities and our total income in order to get to that 600K price point we need a lender to lend us at at least 50% debt to income. I know the norm is not above 45% but that would not get us a high enough loan. I have heard about some lenders like Quicken loans that lend up to 50% and that some FHA loans can go even higher than that.

I have only purchased out of state investment properties up to this point with at least 20% down so the primary residence loan is new territory for me. I would like to speak to lenders that are known to have a higher than normal debt to income ratio to see if we can make something work. I am thinking community banks, credit unions etc.. may be the best bet? Or some lenders that are known to offer higher D to I limits for FHA loans.

Does anyone have any contacts or suggestions for lenders that do offer higher debt to income either for conventional or FHA. We would need lenders for the state of California or nationwide.

Thanks so much in advance for any advice.

David