Posted on: 20th Jun, 2009 12:21 am
My Brother in Law wants to buy 2 lots of property. He has already done market reserch & getting it very cheap. The first property he is renting a house on and the second has a house being rented.
He is interested in buying both the properties and also building a house on the 2nd houses extra property. He would like to maintain both current houses to rent as a source of income.
His problem is that he has high debt to income ratio.
My question is would the equity in the houses and the rent he could obtain be enough to qualify for a construction loan? I understand you probably need numbers to give me a good answer, but I guess I am kind of looking for information on how the rental situation/other property ownership could positively affect our ability to qualify for a construction loan.
He is interested in buying both the properties and also building a house on the 2nd houses extra property. He would like to maintain both current houses to rent as a source of income.
His problem is that he has high debt to income ratio.
My question is would the equity in the houses and the rent he could obtain be enough to qualify for a construction loan? I understand you probably need numbers to give me a good answer, but I guess I am kind of looking for information on how the rental situation/other property ownership could positively affect our ability to qualify for a construction loan.
robertsmith2005
If you say he has a very HIGH DTI, then that could be a big hurddle in gettign the loan, even thoguh he can show the income
Good luck
If you say he has a very HIGH DTI, then that could be a big hurddle in gettign the loan, even thoguh he can show the income
Good luck
Equity in the homes will not matter. However, the rental income will help in the qualification process. There will need to be signed leases for both rental properties.
