STR Rehab Loan w/ high DTI

[Nithin Mathai]

Hi BP friends! I am looking at purchasing a home in Vermont to use as a STR/Airbnb/Vrbo and vacation home for my family. My DTI is too high to qualify for any conventional financing.

I am looking at DSCR loans, but don't see anything specific for STR rehab projects. I do see LTR rehab loans and DSCR Airbnb purchase loans. I have a HELOC for about $200k for any down payment/other expenses, but the whole project including purchase ($280-300k), rehab ($80-100k), and furnishing ($30-40k) will cost about $390-440k.

I am reaching out to lenders right now, but are there any products I should be aware of or creative lending solutions that may work for my circumstance? I’d appreciate any input. Thanks in advance! 

FYI: The house tried to sell previously and during the appraisal process, the appraiser stopped and the bank cancelled the appraisal since the property had not been close to being completed in its renovation. I’d rather avoid buying the house and refinancing it because of this incident.