All Forum Posts by: Stephanie Baker

I initially thought that it was common to use the rental income to aid in qualification for a delayed finance. Now I am starting to see that maybe it isn't. Our credit is fantastic, but debt to income when considering holding three mortgages and not counting rental income is not. What threw me when talking to this lender is that she was the first that acted as if she understood the concept and Fannie Mae rules. She was just certain she knew what she was talking about. I will call some additional lenders on Monday and see what I can find out. 

Thank you both for your input.  Christina, you had to wait 6 months before you could do the fannie mae delayed financing?  Everything I have seen and been told is that it has to happen within the first 6 months after purchase and there is nothing that can be done with financing between 6 and 12 months post purchase.

Do you have any thoughts on how I find a lender who might actually know all of the ins and outs?  I am concerned that I might find lenders who say sure, you qualify, and get half way through the loan process to find out they didn't know the requirements and we don't qualify after all.  

Thanks again for your help. 

I have a financed primary residence, a financed rental, and another property that I purchased with cash and am rehabbing to rent out.  I have a tenant ready to move into the new rental as soon as it is complete.  I had hoped to use delayed financing to get cash out on this property for future investments.  After speaking to a couple of lenders it seems that we are unable to qualify for delayed financing.  According to the lender, in order to use rental income to help us qualify we have to have rental income declared on our last two tax returns and we only have it on last years.  Because we have not been landlords for two years, neither our current rental income nor the rental income from the new property will be considered in our eligibility for the delayed finance and both our primary and first rental mortgages will be counted against us, leaving us with only our personal income to cover the cost of all three mortgages.   If that is the case we do not qualify.  According to the lender these are Fannie Mae requirements and there is no way around it.  She said our only options would be a hard money loan or possibly a commercial loan. 

Does anyone have personal experience with this?  When I first started researching delayed investing on this site I didn't see any mention of these requirements and the process seemed much more simple than it is turning out to be.  Any insight into actual qualifications needed, and/or personal experiences with delayed financing would be greatly appreciated.