DTI is too high to qualify

[Brendan Bellantoni]

I am curious as to how I can qualify to borrow money to purchase a multi-family property. I have over $100k in student loan debt. I have no credit card debt and no other debt except my student loans. I make roughly $53k/year and have $50k saved up to find a property. I have a 780 credit score as well. It doesn't make sense to pay off my student loans since I will still have a significant amount to pay off. I wanted to house hack but it looks like I won't qualify for an FHA type of mortgage. I was hoping I could possibly use the potential leases toward my income to help me qualify but am unsure as I am still learning.

I was wondering if others have overcome their student loans to still be able to purchase properties? I was considering a hard money loan as well.  Thanks for the help.  

[David M.]

@Brendan Bellantoni

What lender are you working with that you can't qualify for a FHA loan? direct message me for a referral..

That being said, your income isn't that high, especially if in NY, NY, to qualify to purchase something.  Yes, you can use expected rent from the other units in a multi-family and your lender would help you take care of that in determining how loan you would qualify.  However, it still may not be possible..  Would really need to talk about this.

hard money loans are short term, owner UNoccupied loans.  You still need to qualify for a long term loan of some sort unless you are going to sell the property in 6-12mo.

DSCR should be owner-UNoccupied as well I thought...

Just be careful when getting "creative" with your financing.  There is inherently much more risk.  Lets face it, if you can't qualify for the conforming loan you want there is a reason...

I'd be happy to chat if you'd like.  Just send me a direct message.  Good luck.