High DTI, credit score 760+, W2 income 300k+

Irvine, CA · Member since 2016 · 6 posts · 2 votes

Hello all,

I am looking to purchase a home overseas as a holiday home/ air bnb. I own 4 rental properties and my tax returns have quite a bit of write offs resulting in high DTI. Besides that, I have plenty of equity built up, w2 income is strong, high amount in 401k etc. I'm trying to figure out how to get this finance since HELOC is rejecting me due to over 50% DTI. Thank you!!!

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Erik EstradaBusiness Member

Lender · Member since 2022 · 6k+ posts · 1k+ votes

Quote from @Account Closed:

Hello all,

Hey Sapna,

It sounds like you would benefit from a DSCR cash out refinance. DTI is not required.

[email protected]818-269-7983

LuxePrivate Investments LLC 572 Reviews

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Nicholas Coulter
Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
4y
@Account Closed have you looked into a 401k loan? or a fixed equity home loan?
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
4y
Quote from @Account Closed:

Hello all,
I am looking to purchase a home overseas as a holiday home/ air bnb. I own 4 rental properties and my tax returns have quite a bit of write offs resulting in high DTI. Besides that, I have plenty of equity built up, w2 income is strong, high amount in 401k etc. I'm trying to figure out how to get this finance since HELOC is rejecting me due to over 50% DTI. Thank you!!!

Hey Sapna,
It sounds like you would benefit from a DSCR cash out refinance. DTI is not required.
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
4 Reply
Kristen L GarnerBusiness Member
Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
4y
I second @Erik Estrada recommendation. Non-conforming products like DSCR (Debt Service Coverage Ratio), Bank Statement Loans, Asset Based Loans, etc are a great work around for DTI, taxes showing too many write offs, and also for the self employed. These products also give you the option of closing in an LLC unlike conventional, conforming loans. Depending on your scenario you can expect to get around 75% LTV on your cash out with products like DSCR.
[email protected]213-880-0434
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Account Closed
OP
Irvine, CA · Member since 2016 · 6 posts · 2 votes
4y
Thank you! This seems like a good option for me. Does DSCR work for overseas properties? For asset based loans, do you know of any lenders?

Quote from @Kristen L Garner:

I second @Erik Estrada recommendation. Non-conforming products like DSCR (Debt Service Coverage Ratio), Bank Statement Loans, Asset Based Loans, etc are a great work around for DTI, taxes showing too many write offs, and also for the self employed. These products also give you the option of closing in an LLC unlike conventional, conforming loans. Depending on your scenario you can expect to get around 75% LTV on your cash out with products like DSCR.

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Kristen L GarnerBusiness Member
Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
4y
@Account Closed I do asset based loans, DSCR, bank statement, etc. My company only operates within the US but if you tell me where you are looking to buy overseas I can see if I can refer you to someone.
[email protected]213-880-0434
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Account Closed
OP
Irvine, CA · Member since 2016 · 6 posts · 2 votes
4y
Thanks Kristen. I’m looking to purchase in Italy.

Quote from @Kristen L Garner:

@Account Closed I do asset based loans, DSCR, bank statement, etc. My company only operates within the US but if you tell me where you are looking to buy overseas I can see if I can refer you to someone.

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Robert Reynolds
Real Estate Agent · Los Angeles, CA · Member since 2019 · 302 posts · 163 votes
4y
Wow Italy! Please let me know when you get that up and running and I'd love to be your first client. Which part of Italy?
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Ramin Lavi
Lender · Los Angeles · Member since 2022 · 16 posts · 4 votes
3y
Take a cash out loan on one of your properties here using a no doc loan and pay cash for the home in Italy.
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Zach Wain
Scottsdale, AZ · Member since 2019 · 435 posts · 248 votes
3y
@Account Closed - if your W2 income is strong and you do not have any business for self income, than you are talking about high write offs on your rental properties, right? If its depreciation, that can be added back as income, besides that, if you are claiming all of your income the rental numbers should be pretty decent.
Is it one time renovation expenses that are the big write off? Often times, with a letter of explanation and sometimes receipts we can remove those as a 1 time expense.
Everyone loves to jump to Non QM higher rate, higher fee, and pre payment penalty loans but maybe there is a way to put a more creative eye on your tax returns to see if you can qualify for a conventional loan on your properties in the states...
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Shane Elias-Calles
Developer · Orange County, CA · Member since 2019 · 80 posts · 53 votes
3y
Have you checked into borrowing against your 401k? a lot of times you can take a loan and pay yourself back
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Jack Mawer
Lender · Member since 2022 · 338 posts · 374 votes
3y
A DSCR loan sounds like it would fulfill your needs as it just looks at property cash flow and a FICO score rather than tax returns, DTI, income verification, etc. Happy to discuss further if you are interested
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