All Forum Posts by: Account Closed

Shay, the problem is the lender wants to make sure you qualify for the conforming mortgage after you get the house rehabbed and rented, so you have an 'exit plan' for getting out of the hard money loan.

You will have to focus on getting your financials in order so that you qualify for a conventional loan,,,then you can get the hard money loan.

I have heard of people getting loans in a business name, or credit cards, which will be personally guaranteed by you, but don't show up on your credit report, thus don't show up when they figure your debt to income,,,,but that is really just a trick to temporarily help you get a loan,,,the main goal i getting your DTI in order

So how could I get my DTI in order? The only debt I have is a car note and living expenses. I also have a lot in reserves. Maybe I should find a better paying job in my field?

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Originally posted by @David Thomas:

Shay Linton Have you considered an owner-occupied Multifamily purchase as your first step? This gets you the rental income to offset your DTI ratio. Most big banks will consider up to 50-53% DTI for FHA . My local bank reps verified that a few months ago but I could be off by a point or two. Conventional loans are around 40-45% DTI max based on my recent purchase this month.

No I haven't. I joined LSU trying to follow their business model. Starting out in SF then MF.

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Originally posted by @Jon Holdman:

I don't get this part:

I assume these represent actual cash outlays. So what left after subtracting your business expenses from your business income is truly your spendable income. And, when starting out in the landlord business, lender will only look at existing income. Even if your business produces a lot of revenue, if it all goes toward expenses then you have little left for your day to day living expenses or paying the mortgage on your rental. The lack of income is the fundamental problem you need to fix in order to get a mortgage. Hard money is, at best, an expensive, short term way to get into a rental. You still have to get that re-fied into some sort of long term, bank rate (or close) financing.

Realize its likely you'll need to hold for six months to a year if you want to refi with a new appraisal. At hard money rates, you could pay out 15-20% of the loan amount in interest over the course of a year.

The write-offs I had were real estate memberships fees,work related tools,and other miscellaneous expenses. This greatly reduced my yearly income. I don't really have any monthly business expenses.

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Originally posted by @David Edgerton:

As the others have said, HML are not long term loans, and are considered "bridge" loans or "construction" loans. The Lenders that do HML analyze a deal based on two factors. First, they analyze if it's a good investment and make sure your construction costs and potential rent and ARB all add up. Next, they have to understand your long-term positions, meaning, what are you gonna do have the HML. It sounds like you are buy and hold, so maybe your plan is a 30-year fix lean. The thing is, these lenders are not normally a "portfolio" lender- meaning, they won't keep your loan for 30 years, rather, they want to sell it as a conventional loan. This means you have to be qualified for a Qualified Mortgage, and meet DTI standards. You are NOT getting approved for the long term loan, based on our DTI.

Yes I understand about HML, I just need that HML so I can do my rehab then get into a conventional loan soon as possible. I can't even get passed go. My plan was to keep the house(s) for no more than 5 years. I've tryed with 2 lenders so far each lender turned me down because of my DTI ratio. I want to get a pre-approval letter so I can start buying houses. I'm not sure if it's a 30-yr fix lean or not.

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I'm in the Houston trying to get pre-approved for a hard money loan. My plan is to buy and hold. My problem is my debt-to-income problem. I had too many business related write-offs on my taxes. I really don't want to go to private money I want to use a hard money lender. I guess my question is does the DTI varies from lender to lender? I already had my taxes done for 2013 is there anything I can do at this point? I'm tried of sitting on the sidelines I'm ready to jump in!

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Hi Matt

I'm also in the Houston area(clear lake area) I'm a newbie so I haven't got started yet. I'm just trying to learn as much as I can from here and meet people in my area. GL!

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Thanks for the advice David, so on Har.com this is where I can find all the realtors that I ever need?

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Soon I want to start finding houses(Houston area) that I can buy and hold so I can start getting some cashflow. Do I need to start calling up realtors in order to do this? Or can I simply visit websites like ''My house Deals.com'', MLS.com to find those great deals?

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I'm a newbie in this real estate world with no experience. I looking to find some people in my area (Houston/Clear Lake area) I guess you can say looking for some kind of mentor to get me started.

I'm interested in buying and holding single-family homes but I don't have any lenders on my team yet. Not ready to pull the trigger now but soon.

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All Forum Posts by: Account Closed

Account Closed has started 12 posts and replied 29 times.

Post: unable to get a hard money loan

Post: unable to get a hard money loan

Post: unable to get a hard money loan

Post: unable to get a hard money loan

Post: unable to get a hard money loan

Post: New Member from Houston, TX

Post: Do I need to find realtors?

Post: Do I need to find realtors?

Post: Looking for mentors in the Houston/Clear Lake area