Calling all Debt-to-Income specialists!

[Christian Hilbrich]

Property: Airbnb Condo in Montana

Title: in LLC (Bought in 3 partners personal names Chris, Tim & Gabe. Warranty Deed transfered to LLC.)

Loan 1 - Mortgage:  guarantors: Chris, Tim, Gabe (Second Home loan 20% down)

Loan 2 - HELOC: guarantors: Chris & Gabe

Mortgage Payments are made from their LLC account directly to the mortgage lender.

Problem: each of the owners DTI is wrecked because Chris, Tim & Gabe can only individually recognize 33% of the yearly revenue, but they are individually responsible for 100% of the debt.

Possible Solution: Mortgage broker told Chris that once you can show 12 months of mortgage payments from the LLC bank account to the mortgage servicers that the total debt no longer hits Chris, Tim, & Gabe's personal DTI, thus their debt to income is favorable and they can qualify for another loan.

Has anyone successfully used this possible solution in the past? Is there something we're overlooking?

Other solutions to fix DTI:

1. Refinance the property into a commercial loan under the LLC (at a worse rate)