My husband and I want to borrow money to buy a residence to "fix it up" and "resell it". However, our debt to income is 32%. It's not high, but what are my odds of getting another mortgage?
We are in the same predicament and I have found that going the 'traditional' mortgage route is not an option because we just don't qualify with that ratio even though we have excellent credit. There are a few good alternate ways to come up with the cash to get started...
1. Find a hard money lender (someone you know personally) and pitch your idea to them. You do all the work, they finance your projects and they get 50% of profits at closing.
2. Check the real estate and investment sections of your local paper, sometimes hard money lenders advertise there and they will offer you the same deal.
The perk is that if you work with right person, they are content to provide that cash to purchase and rehab if there's the promise of a good return at the end. Then, you save your profits from a few houses and you can start to finance your own houses yourself. Both of the people we work with won't finance deals for us without at least a $20k profit margin.
We are in the same predicament and I have found that going the 'traditional' mortgage route is not an option because we just don't qualify with that ratio even though we have excellent credit. There are a few good alternate ways to come up with the cash to get started...
1. Find a hard money lender (someone you know personally) and pitch your idea to them. You do all the work, they finance your projects and they get 50% of profits at closing.
2. Check the real estate and investment sections of your local paper, sometimes hard money lenders advertise there and they will offer you the same deal.
The perk is that if you work with right person, they are content to provide that cash to purchase and rehab if there's the promise of a good return at the end. Then, you save your profits from a few houses and you can start to finance your own houses yourself. Both of the people we work with won't finance deals for us without at least a $20k profit margin.
Good Luck!
You could try a mortgage with no ratio requirements. There are many programs available.
Scott
Definately go no ratio or stated. With good credit you should be all set