Personal Financing for my Home, My rentals as hurting me

[Chad Reed]

I have ran into an interesting financing situation and I know that this community will help me like they have so many times before.   

My wife and I recently moved to Pittsburgh and we decided we wanted to rent for a year before we decided to purchase. We have been here 6 months now and we are ready to make an offer on a house. In the past 6 months I have bought 3 rental properties here in Pittsburgh and now every lender I speak with is taking the debt from these and counting them against my DTI ratio, but not giving me credit for the rent. This is throwing my Debt to Income ratio out of whack, I have great credit, I can put a large down payment if I have to. I know the deal makes sense for the bank I just need to find a lender who understands it.

Any information or leads on banks would be very appreciated.

Thanks.

[Chris Mylan]

@Chad Reed

Hi Chad, check in with the many local/ smaller banks and credit unions in the area. Some are portfolio lenders who can be more flexible and will count your income from these properties to bring your DTI ratio back into check. You may also be speaking with the "wrong" person at the bank. Finding a good/ creative lender who knows their underwriter's guidelines can be more important than finding a friendly bank.

I've used Beaver County Credit Union in the past and it has worked out well - one of a few dozen examples in the area I'm sure.