Advice needed for Financing a duplex, no w2 job!

[Alex Coke]

So we have a duplex me and my partner are submitting an offer on. We both have good credit, but are both newly pursuing invest without W2 jobs (making it tough to get a congenital mortgage). Any recommendations for private lenders or helpful mortgage companies to work with in this situation??

We are trying to work with what we got, so help us out please!!

[Kevin Romines]

These loans are known as DSCR loans or Debt Service Coverage Ratio loans. Basically what it means is that the lender wont look at any income from you, they will only determine if the rents will cover the proposed PITI mortgage payment. Some lenders want a a 1/1 ratio meaning the rents must at least cover the PITI mortgage payment. Other lenders want as high as 1.25/1 meaning the rents must be 25% more than the proposed PITI Mortgage payment. That is their only determination of a debt ratio on those loans.

Those loans and lenders are known as Non-QM or portfolio loans. Virtually any mortgage banker or broker will have access to those loans. You will need to call around to see who has what? Also, it is best to ask the specific loan officers how many of those loans they have done in the past. Experience with these loans is helpful, but not absolutely required. The loans are not that tough to do.

The interest rates tend to be about 2% higher than conventional rates, so not bad considering the special way that the debt ratio is determined. You can use these loan types, until you have built up enough income through rentals, that you can then qualify for conventional loans via traditional methods of deriving your debt ratio. 

If you need a referral, let me know, we branches across the country that do these loans. 

I hope this helps?