Investment Property Acquisition
“Glenn helped me when I was told by other loan professionals that I couldn’t buy any more properties due to income, I was interested in buying a two unit investment for rehab and then rental, but was unable to find someone who understood how this would add to my income.”
June’s situation was unusual. She had a very low loan to value on several rental properties and a great FICO score but limited liquidity. Once we got into analyzing her loan we found that not only was here situation complicated, it presented problems for actual mortgage software to correctly calculate the debt to income ratio. She owner occupied two unit buildings since she was living in one unit, the full mortgage payment was counted against her and since half of her interest, property taxes and insurance were deducted from her income on her schedule E, she was effectively being hit for a mortgage payment and half. We were able to manually enter the half of the liability for personal mortgage payment and half of the liability against the rental income. We then were able to properly and accurately access to her debt to income ratios.
Once that was done we were able to analyze where we could get more cash to get a new loan amount down, to where the income property broke even of 75% of the rental income, and we were able to get her purchase loan approved!
“Glenn is our star without him we would never gotten the loan, I wish I’d meet him years earlier!”