Investor · FL · Member since 2020 · 179 posts · 54 votes
Hi everyone,
Let's say you are struggling to qualify for conventional loan to for an investment home of 300k (2nd home/vacation/ STR home).
If you pay for the home cash 300k, and look to refi in 12 months, is it easier to qualify for the refi and pull 75% out (assuming appraisal is same 1 year later).
Since you struggled to qualify for the conventional for 300 k is it easier to now qualify for the refi or are the same standards used?
Yes the DTI was the issue, and it should improve by then as well.
If the property also had positive cash flow would this help for the refi after one year?
If 75% of the rent is more than the PITI that will help your DTI a little. But they were probably including that to calculate your DTI when you were looking to purchase.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
5y
@Chris K. do you own any other homes? If you do not....then they cannot use income to help you qualify. But if you do own, then they can. So if you do own other properties, and you still couldn't qualify, then something else would be up with your qualifying that would need to be addressed. Hope all of that makes sense.