Equity greater than (apparent) credit worthiness (loan, credit score, loan, properties)

[verybadgnome]

My loan office got back to me today with not so great news. In order to qualify for a 350k loan I would have to pay off my current home entirely as well as my vehicle. They said future rental income would have to be demonstrated over a 12 month period for it to count towards my new loan. Of course I live in the house now so this is not possible unless we went into a rental for a year. The ironic thing is my equity is along the lines of $470k (550k - 80k still outstanding). There are no other loans on the property; my credit score they pulled was 750 (FICO score was higher); and my DTI is less than 30%. I guess my income was the weak part at less than 80k.


My goal was to buy a new house and rent this one out. After the original is paid off in 7 years then build a granny flat on the back of the property and rent both out. Between banks, credit unions, and independent lenders which would have the best options for me?

[adjusterjack]

Between banks, credit unions, and independent lenders which would have the best options for me?

Whichever one is willing to lend you $350,000 without paying off your house and car.


Lenders are being very careful with the uncertainty of the Covid19 virus putting people out of work.


I suggest you postpone your dreams of being a landlord until the virus crisis and the economy is back to normal for a while.

[Jimmyp25]

Originally Posted by verybadgnome

My loan office got back to me today with not so great news. In order to qualify for a 350k loan I would have to pay off my current home entirely as well as my vehicle. They said future rental income would have to be demonstrated over a 12 month period for it to count towards my new loan. Of course I live in the house now so this is not possible unless we went into a rental for a year. The ironic thing is my equity is along the lines of $470k (550k - 80k still outstanding). There are no other loans on the property; my credit score they pulled was 750 (FICO score was higher); and my DTI is less than 30%. I guess my income was the weak part at less than 80k.


My goal was to buy a new house and rent this one out. After the original is paid off in 7 years then build a granny flat on the back of the property and rent both out. Between banks, credit unions, and independent lenders which would have the best options for me?

What type of loan ? I’m looking for some investment properties in the Austin area in a few months . How much are you putting down ? What percent are they asking?