Ideas for Financing a Second Home

[Brad Gibson]

I'm looking for ideas or recs for financing a second home.  My wife and I are looking to purchase a second home in the San Juan Islands area of Washington state.  We are not looking to re-locate, just buy a great second place to spend some of our time with an eye toward retirement in that area eventually.

Both wifey and I have good W-2 jobs.  We also have no personal debt.  Primary home is paid off.  Kids college is paid for.  Our cars are debt free (she drive a 8 year old car and I drive a 7 year old vehicle).  We are maxing out retirement savings through our workplaces.

We also have a 26 door real estate portfolio that is leveraged by about 1.8 million, but is worth conservatively about 3.15 million.  We have 8 notes that are backed by Fannie/Freddie & the rest are portfolio loans with local banks that finance our investment property purchases.

I'd like to get some guidance on the best way to get financing for the second property.  We have approximately $100,000 in personal checking accounts and about the same in the business accounts.  

What I don't have is a banker who can seem to get past the $1.8 million in debt to lend on a personal home. Never mind the debt is collateralized by a SFR & multi-family portfolio that is worth 1.3 million more than the debt obligation and every single door is cash flow positive. The local banks won't lend since it is outside their area. Rocket mortgage and Wells Fargo enthusiastically get all of the information and are excited until they get spooked by the debt on the rental portfolio.

I need a lender who can actually analyze the situation rather than simply run a debt to income ratio.  Any suggestions or recs in the Washington area or a national lender that has cerebral activity?  Oh, our credit is in the 800's.

Thanks in advance for your help.

[Grant Schroeder]

@Brad Gibson have you looked at a Debt Service Coversge Ratio (DSCR) Loan? This would simplify things and keep you from needing to provide documentation beyond asset documentation for reserves since the loan is based solely on the property similar to a commercial loan. All that is needed from your personal financials is your credit and asset statements for reserves on just the property you are purchasing. Beyond that, a property appraisal is all that's needed. Let me know if you have questions on this or want to explore the possibilities with this loan!