HELOC on Primary - Lender that will include rental income in DTI

[Brandon Harris]

Hello,

Does anyone have a referral for a HELOC that will fit my situation?

I am looking to get a HELOC on my primary home in Oregon. I was in process with a lender, but they won't include my Schedule E rental income in the DTI calculation until it is shown on 2 tax returns. This is because the HELOC would be in second position. I have 2 SFRs and our primary. By excluding the rental income it looks as if I have 3 mortgages that aren't covered, as opposed to just a mortgage on the primary.

Based on current market rates I am at 80% LTV on the primary. I'm looking for a 90-95% LTV HELOC so I can get a good sized credit line established. I have a strong credit score. I have a good DTI when you include the rental income.

The rental income only shows on 1 tax return. I have signed leases, consistent rent payments, security deposits, etc. that can show the income is legitimate.

I've called a few more lenders, local banks and credit unions, and haven't had any luck. Does anyone know of a lender that will fund a HELOC on these terms? I have only worked will large commercial banks, credit unions, and local banks so maybe there is someone I don't know about.

Thanks in advance for any help you can provide!

[Sam Jurgenson]

Hey Brandon, It looks like you have gone down several routes and done due diligence. Have you looked into any NON-QM options or Debt Service Coverage Ratio (DSCR) Options? You may have to do a cash out refinance to accomplish these as opposed to a line of credit. But there can be some advantages depending on your goals and your overall scenario. Happy to discuss further with you.

[Upen Patel]

@Brandon Harris Lets speak. I can get this done for you. I can use your rental income, don't need any seasoning on tax returns.

Out Home Equity Loan (not HELOC) is a relationship based product. So we either need to have a prior relationship (which we don't have) or they will approve you and then issue the loan in parallel with another purchase loan (i.e. to use for down payment on the purchase of an investment property).