Mortgaging a free and clear property

Does anyone know of a lender who is flexible with debt to income ratio?

I have a free and clear condo which Im looking to mortgage Value = ~170K. I’m looking to mortgage 80K.

I have several income generating properties and salary from my full time job however when I combined the rental and salary incomes my DTI is approximately 57%. BTW this is after I deduct 25% from my monthly rental income for vacancies.

Without mortgage liabilities my DTI is approximately 32%.

Overall my rentals are producing income even with the 25% income deduction however it still does not put me below the 40% DTI most lenders require.

I would assume that a lender is not going to put alot of weight on the DTI when they are financing less than 50% of value.

Comments, suggestions? please help


Google "Private Money Loans" and find a lender for your state / area!

Interest rate is higher than conventional and less than hard money typically 7 to 10% plus 1 to 3 points.

Your other debt won’t really matter as this loan will be based on LTV. Typically private money loans are15, 20 or 30 year mortgages due between 3 and 10 year’s as a balloon.


Why are you looking at hard money lenders when a bank will be more than willing to finance and property at 47% LTV. Your interest rate will be much lower if you go with more traditional lending institutions. The rental income will add to the appeal for the lender to finance the property.

Send me an email. I know some investors who can help.

I think you might be figuring you DTI incorrectly.

You should take each rental property, take 75% (assuming you have held them less than 2 years) of the income, subtract the PITI, then if you have anything left, it goes as a positive toward you DTI, if not it goes against.

You don’t just add your revenue (including rental income) and then figure you DTI with the mortgages added into your regular bills and personal mortgage,you will always have a much higher DTI doing it that way