debt to income ratio and loans

Hi, everyone. I am about to embark on finding my first house to rehab and probably rent. My concern is being able to qualify for a loan for that property. I have good credit, but because I am buying a house and have student loan debt, my debt to income ratio is very high (I have over 100k on my student loans). I am taking out a home equity loan for the downpayment, repair budget, etc, but I’m worried that no one will lend me money for the actual mortgage. Any suggestions? Thanks and I love this forum

You can get a stated loan.

A stated income loan is the way to go. Rates will generally be higher as the lender is taking more of a risk.

I would get a pre-approval from someone and that way you will feel comfortable embarking on this venture.

Don’t turn your own deal down before you speak with a professional licensed mortgage broker to explore your options. Make an application.

Stated income loans mean that you have to state the income you’ll need to qualify for the debt that you currently have plus the debt you are applying for. Since you’ve told us that your debt ratio is too high, then that means that you’d have to lie about your income. No
Ratio loans are better, and True No Docs are the best.

Try not to “shop around” I would find a broker and have them do the “shopping” for you. If you try to shop yourself, your credit will be pulled by everyone that you speak with.

A broker can shop your loan around for you, with just one credit pull.

Yes, I agree with mdhaas, we deal with 400 lenders so have the LO shop it…less of a hassle for you also.