Posted on: 06th Sep, 2010 11:12 pm
we have a 23 unit apartment building with a loan and a house with a loan and no other debt. our credit history is excellent, there is equity in both the apartment building and the house, the building makes a profit, income from our other work is good and we have savings in the bank. we've been trying to refinance our home mortgage to get a better rate and because it was a 10yr fixed that will become adjustable in 4 yrs time. but we have been turned down because our income to debt ratio is over 40%.
i can't imagine that we are the only landlords in this position.... any suggestions or advice would be appreciated. thanks.
i can't imagine that we are the only landlords in this position.... any suggestions or advice would be appreciated. thanks.
Hi mariadevola,
There are two ways in which you can improve your debt to income ratio. Either you'll have to increase your income or you'll have to pay off some of your debts. You might make a lump sum payment toward your 23 unit apartment building which might help you in lowering your debt to income ratio to some extent.
Thanks
There are two ways in which you can improve your debt to income ratio. Either you'll have to increase your income or you'll have to pay off some of your debts. You might make a lump sum payment toward your 23 unit apartment building which might help you in lowering your debt to income ratio to some extent.
Thanks
Debt ratios up to 45% and sometimes up to 50% should be ok to refinance.
Is the equity in your home over or under 20%. Under 20% would require private mortgage insurance and debt ratios over 41% could be a problem in that situation.
Is your present mortgage owned by Fannie Mae or Freddie Mac or possibly be an FHA mortgage?
Is the equity in your home over or under 20%. Under 20% would require private mortgage insurance and debt ratios over 41% could be a problem in that situation.
Is your present mortgage owned by Fannie Mae or Freddie Mac or possibly be an FHA mortgage?
