All Forum Posts by: Kim Rock

Mark,
Wells Fargo's small commercial dept has some nice products right now that could help you.. They also have a program where you can refi your primary residence to get the down payment needed for a commercial loan, which most banks don't do.

Mark,
I am answering here just because the answer could benefit others as well - Yes, rents WILL help you... most banks count 75% of rental income against the debt of the mortgage, some count it as more. So certainly yes your debt will be majorly offset by the rental income. They do most times however require 2 years of tax returns showing this rent - so if you don't have that it may not help as much. Some banks only require a signed lease and not the tax returns though. Either way - the answer is yes, rents help. :)

James/Mitch,
I don't think you can transfer the DEBT to an LLC, just the title, Mitch is most likely correct on this one. However, if you did transfer the titles, and then purchased the new home in the name of the LLC, would that help? Because the new LLC would technically have 2 titles, and no debt.... I'm not sure how that would work?

And yes I did originally qualify for my primary residence, however since then my income has gone down a little bit. I am a Realtor, and unfortunately the past 2 years with the market where it is the income levels just aren't there, therefore increasing my DTI for the time being. This year looks to be picking up - but that doesn't help me for the immediate purchase I want to make.

I may try to shop myself around to some local banks .. although I did contact a few this week who service their own loans, and they all said the same thing, the one thing they are VERY strict about is DTI.

Bryan,
Regarding an equity partner - I personally do not know anyone who would do this. Are there services/companies who do this, or at that point does it basically just become private lending/hard money?

Those are great ideas, it's just that my need for a solution was more immediate as opposed to long term. Long term yes it'd be great if my income was higher to even out my dti, but by the time that occurs my husbands fico will also be higher so we'll be fine.

I just wanted to make this specific purchase in the next 30 days, which is why I was looking for something creative immediately - not more of an overall "make more income, cut back on spending etc" fix.

I did give details, the situation is my husband has subpar credit and would not be approved for a loan.

The situation is as follows:
My credit - 800+
His credit - 580

In my name:
3 mortgages (one for primary residence, 2 for rentals)

My credit history, income, etc are all good - however, DTI is in the 60's mainly due to our primary residence being soley in my name.

He has no debt to his name, however the credit score stops us from being able to do anything in his name.

FHA loan is not possible - this will be a rental property.

Seller financing is not possible - the owner will not agree to it.

Adding other people as cosigners/backers - not possible, we do not have anyone to do this nor do we want to involve partners.

Refinancing another property - Can't happen due to my DTI, already tried.

Hard Money - this is not a flip, it will be a buy and hold, and hard money is not a smart decision for a long term investment. Who's to say I can refi in a year and don't get stuck.

Private Money - probably our best option. Now where do I find it? Contacted a few local/small banks, but husbands credit score and my dti are still the main issues. They won't take his income into account without using his score.

I was hoping there'd be an easy fix to let me use his income, or find a way to get our primary mortgage debt to stop counting against me (via a lease or something of that nature) but it's not sounding like there are creative ways out of this after all.

Not an issue - we will continue to rebuild husbands credit and just wait to purchase anything until then.

Thanks again everyone.

These are all good ideas, assuming I *could* add my husband.. But I just really can't, he would not be approved, trust me, it wouldn't work. Oh well! :/ Thanks for the input everyone though, I do appreciate it.

It's an investment property, you can't do FHA for rentals.

Charles - Can you further explain this? If my husband and I were a multi member LLC, would his credit score not personally be pulled when the bank qualified us?

And the only way to increase my "I" would be to include my husbands income. I just wish there was a way to include his income without qualifying him/adding him to the note :/

To be blunt - his credit is no where as good as mine, which is the issue and why I am the one who finances everything we own... which obviously leads to me having a high DTI. I carry the load for both of us.

No.. it needs to be my name soley. No husband, no business partners, no cosigners. I just need to a figure out a creative way to get approved with a high DTI.

I actually have very little debt - it's just our primary residence is counting 100% against me, where as my husband is the one who pays the mortgage for that home. I was hoping a local bank might see past that and realize it, but they all want to obviously use him to qualify me - and we can't go that route.

If it can't be done soley in my name, then so be it. I just figured it was worth a shot to get some creative ideas flowing. The only idea I had was having my husband sign a lease that he rents out home from me ... but again, I am assuming that won't fly.