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elementalnomad

Advice

  • (3 Contributions,
  • 0 Best Answers,
  • 1 Helpful)

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Self Employed with excellent credit seeking portfolio/private loan in Austin, Texas

Answer

Hi Scott and Shelley, I own my car outright, have no student loans, no medical debt, and the credit card debt I do have I was looking to eliminate in a cash out refi. The problem has been my debt to income ratio, even with no debt. I use my car for work, and I have a home office so I am able to write off more than 20k in deductions. As a result my tax liability is very very low and banks seem only to be concerned with "line 31" on the tax returns "net profit. It seems the banks have overcorrected themselves from the days they would give anyone with a pulse a home loan. The loan officers were calculating my dti with nothing but my housing expenses and it was still too high. Prior to my owning this home I rented an apartment that was double my mortgage payment on the same income. Common sense seems to be missing. 

  (1)
Self Employed with excellent credit seeking portfolio/private loan in Austin, Texas

Answer

Hi Scott and Shelley, I own my car outright, have no student loans, no medical debt, and the credit card debt I do have I was looking to eliminate in a cash out refi. The problem has been my debt to income ratio, even with no debt. I use my car for work, and I have a home office so I am able to write off more than 20k in deductions. As a result my tax liability is very very low and banks seem only to be concerned with "line 31" on the tax returns "net profit. It seems the banks have overcorrected themselves from the days they would give anyone with a pulse a home loan. The loan officers were calculating my dti with nothing but my housing expenses and it was still too high. Prior to my owning this home I rented an apartment that was double my mortgage payment on the same income. Common sense seems to be missing. 

  (0)
Self Employed with excellent credit seeking portfolio/private loan in Austin, Texas

I am self employed, owe 80k on my townhome that is conservatively worth about 145k. I have been turned down by banks because my debt to income ratio is too high as a result of claiming deductions on my taxes. My income is good, but i claim over 20k in deductions so my gross income is very low. My current mortgage payment that is current and always on time is nearly double what my refinanced payment would be. My 3 credit scores average over 700 and I have a willing non occupying co borrower if needed. My credit union turned me down, and so have several of the mainstream banks. Does anyone have any suggestions or referrals to someone that can help me in my current situation.Thanks

  (0)
Self Employed with excellent credit seeking portfolio/private loan in Austin, Texas

I am self employed, owe 80k on my townhome that is conservatively worth about 145k. I have been turned down by banks because my debt to income ratio is too high as a result of claiming deductions on my taxes. My income is good, but i claim over 20k in deductions so my gross income is very low. My current mortgage payment that is current and always on time is nearly double what my refinanced payment would be. My 3 credit scores average over 700 and I have a willing non occupying co borrower if needed. My credit union turned me down, and so have several of the mainstream banks. Does anyone have any suggestions or referrals to someone that can help me in my current situation.Thanks

  (0)