Mortgage I am not liable for counted in my DTI

[Mike Malyy]

Hi,

I am a still a small time investor and still work my W2 while I try to build a portfolio. I am currently running into an issue with some lenders which prevents me from acquiring financing. I own an investment property, but not a primary residence. The issue is, I am on the deed to my parents' primary residence, but not on the mortgage. I have reached out to a number of lenders and brokers, and I am being told that they are required to count my parents' mortgage as a liability against my DTI, which prevents me from getting another mortgage. I find it ridiculous. I understand that I am liable for taxes and insurance because my name is on the deed, but not the mortgage. Additionally, Chase bank tends to agree with me as they had absolutely no problem qualifying me for another mortgage, but Chase doesn't want to finance anything that has dry rot (which any discounted property will have) due to it being a health issue. Needless to say, Chase won't finance anything I want to buy.

My mortgage broker suggested either taking me off the parents' deed (which I don't want to do at this point) or providing 12 months of bank statements that my parents have been paying mortgage out of their account without my name on it (which I am unable to do because of certain arrangements with my parents).

It would be great if a lender or an experienced investor could chime in and let me know if there are other alternatives to deal with this as I have already found the property that I want to purchase.

Thanks

[Shaun Weekes]

Originally posted by @Mike Malyy:

Hi,

I am a still a small time investor and still work my W2 while I try to build a portfolio. I am currently running into an issue with some lenders which prevents me from acquiring financing. I own an investment property, but not a primary residence. The issue is, I am on the deed to my parents' primary residence, but not on the mortgage. I have reached out to a number of lenders and brokers, and I am being told that they are required to count my parents' mortgage as a liability against my DTI, which prevents me from getting another mortgage. I find it ridiculous. I understand that I am liable for taxes and insurance because my name is on the deed, but not the mortgage. Additionally, Chase bank tends to agree with me as they had absolutely no problem qualifying me for another mortgage, but Chase doesn't want to finance anything that has dry rot (which any discounted property will have) due to it being a health issue. Needless to say, Chase won't finance anything I want to buy.

My mortgage broker suggested either taking me off the parents' deed (which I don't want to do at this point) or providing 12 months of bank statements that my parents have been paying mortgage out of their account without my name on it (which I am unable to do because of certain arrangements with my parents).

It would be great if a lender or an experienced investor could chime in and let me know if there are other alternatives to deal with this as I have already found the property that I want to purchase.

Thanks

The taxes and Insurance will be included in your DTI since you own the home. The mortgage payment shouldn't be counted unless you're on the mortgage and in this case you're not.

I hope this helps.