Bank says LL not a job!!!
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Bank says LL not a job!!! (by RentsDue [MA]) Jun 5, 2018 4:10 AM
       Bank says LL not a job!!! (by NE [PA]) Jun 5, 2018 4:18 AM
       Bank says LL not a job!!! (by Still Learning [NH]) Jun 5, 2018 4:59 AM
       Bank says LL not a job!!! (by myob [GA]) Jun 5, 2018 5:05 AM
       Bank says LL not a job!!! (by razorback_tim [AR]) Jun 5, 2018 5:09 AM
       Bank says LL not a job!!! (by Deanna [TX]) Jun 5, 2018 5:10 AM
       Bank says LL not a job!!! (by RB [MI]) Jun 5, 2018 5:30 AM
       Bank says LL not a job!!! (by Baman [AL]) Jun 5, 2018 5:35 AM
       Bank says LL not a job!!! (by plenty [MO]) Jun 5, 2018 6:11 AM
       Bank says LL not a job!!! (by S i d [MO]) Jun 5, 2018 6:16 AM
       Bank says LL not a job!!! (by Smokowna [MD]) Jun 5, 2018 7:08 AM
       Bank says LL not a job!!! (by Nicole [PA]) Jun 5, 2018 7:24 AM
       Bank says LL not a job!!! (by Oregon Woodsmoke [ID]) Jun 5, 2018 8:10 AM
       Bank says LL not a job!!! (by JB [OR]) Jun 5, 2018 8:12 AM
       Bank says LL not a job!!! (by Tom [FL]) Jun 5, 2018 8:26 AM
       Bank says LL not a job!!! (by Robert J [CA]) Jun 5, 2018 9:14 AM
       Bank says LL not a job!!! (by Chris [CT]) Jun 5, 2018 12:21 PM
       Bank says LL not a job!!! (by myob [GA]) Jun 5, 2018 12:52 PM
       Bank says LL not a job!!! (by Robert,OntarioCanada [ON]) Jun 5, 2018 1:00 PM
       Bank says LL not a job!!! (by Pmh [TX]) Jun 5, 2018 2:33 PM
       Bank says LL not a job!!! (by Jane B. [FL]) Jun 5, 2018 3:03 PM
       Bank says LL not a job!!! (by Livethedrem [AZ]) Jun 5, 2018 11:38 PM
       Bank says LL not a job!!! (by elliot [RI]) Jun 6, 2018 1:57 AM
       Bank says LL not a job!!! (by RentsDue [MA]) Jun 6, 2018 4:12 AM
       Bank says LL not a job!!! (by myob [GA]) Jun 6, 2018 5:21 AM
       Bank says LL not a job!!! (by Kyle [IN]) Jun 6, 2018 6:11 AM
       Bank says LL not a job!!! (by Pmh [TX]) Jun 6, 2018 3:05 PM
       Bank says LL not a job!!! (by Dee [AZ]) Jun 9, 2018 9:15 PM


Bank says LL not a job!!! (by RentsDue [MA]) Posted on: Jun 5, 2018 4:10 AM
Message:

This is insane. I'm having issues refinancing my own home ( owner occupied by me) because

1. The bank is claiming I don't have a job. They are not counting the 10 years I have been a LL. I make good money at it and I claim every penny, my tax returns all reflect that. Most rentals are held in LLCs but they are "pass through" entities so they show up on personal tax return. I do have W2 income from C Corp but apparently that is self employment and I don't have 3 years of it.

2. Underwriting is using the net profit as income and then subtracting debt to get the income to debt ratio. I tried explaining to them that the net profit already has the mortgages deducted, they are deducting them twice.

3. They are claiming my owner occupied home is a commercial property. It is a single family home in the middle of a forest. They say it is a commercial property because I have a home office ( I have a C Corp in a different industry and my address is listed as the business address).

Credit score is 825, schedule of real estate is quite impressive and refinancing home at 50% of its appraised value. I have already applied to a different bank. I think I have an inexperienced underwriter. She is also quite rude on the phone. I havent been in the mortgage game for awhile. Is this the new normal?

--71.10.xxx.xxx




Bank says LL not a job!!! (by NE [PA]) Posted on: Jun 5, 2018 4:18 AM
Message:

Go to a bank with some sense. You have someone staring at a computer screen. Maybe go to her supervisor if you like that bank.

I've never had a job since I started and have had over 30 mortgages including 2 primary residences. It's not the new normal that you experienced. It's someone who thinks you have to have a "job" or you're a bum. --74.47.xxx.xx




Bank says LL not a job!!! (by Still Learning [NH]) Posted on: Jun 5, 2018 4:59 AM
Message:

Try a locally owned bank where they keep the mortgage in house. --24.61.xxx.xx




Bank says LL not a job!!! (by myob [GA]) Posted on: Jun 5, 2018 5:05 AM
Message:

Well well well. Now you've hit reality. The reality of what's printed here-- to the real world of lending and underwritting. So many times on this site-- not the site really but some posters they sugar coat "how they got loans" and you just found out any reputable lender is going to look long and hard at your refi app. 25% right off the top of your income is the norm for loan apps VS rental income.

Your best bet, in my opinion, is to get a copy of FannieMae FreddieMac guidlines and have them in hand while applying. FYI even your local credit union uses those guidleines. (reason is in case they need to sell you rloan on the open market-- it must adhere to fannie/Freddie guidleines) --99.103.xxx.xxx




Bank says LL not a job!!! (by razorback_tim [AR]) Posted on: Jun 5, 2018 5:09 AM
Message:

Look around. You will have to find someone who’s underwriter understands rental property and how to read a tax return. When my wife and I bought our last personal home I was denied due to DTI ratio. The mortgage pro at the bank told me that the underwriters “weren’t used to seeing tax returns like mine. I went to a different bank and told the guy what had happened at the other bank. He said he would take a look at it. I suspect he thought it would be a dead end. He called me back almost laughing stating that the other underwriters obviously didn’t know what they were doing. So keep looking until you find someone who does understand our business. Good luck. --166.137.xxx.xx




Bank says LL not a job!!! (by Deanna [TX]) Posted on: Jun 5, 2018 5:10 AM
Message:

I always remember back in 2011 when I tried to get a loan against a paid-off house owned by the single-member LLC. Even though the house was worth more than the value of the loan, and even though the biz brought in, say, a burger-flipper's wages per year at that point in time, I had to personally guarantee it. And because I had no W2 income, DH had to personally guarantee me--- even though we were trying to keep him separate from the biz. I was trying hard to keep the biz acting like its own legal "person", but the banks kept blurring that line when it came to things like bank loans from small, local banks (2011) or credit cards from big, national banks (2012).

--96.46.xxx.xx




Bank says LL not a job!!! (by RB [MI]) Posted on: Jun 5, 2018 5:30 AM
Message:

I hear Ya. --47.35.xx.xx




Bank says LL not a job!!! (by Baman [AL]) Posted on: Jun 5, 2018 5:35 AM
Message:

I have been battling the same problem for years. Do a phone interview with your next bank. Find out all the docs and schedules needed. Then run a test by them. Do not continue to reapply because it will hurt your credit score.

--108.93.xxx.xxx




Bank says LL not a job!!! (by plenty [MO]) Posted on: Jun 5, 2018 6:11 AM
Message:

Yeap. Know the frustration. Had to get commercial loans until i found the right bank. Try local. Sounds like you clearly understand what they dont. Found the same idiotic format... Apply loan twice! Really add that back in! --66.87.xxx.xx




Bank says LL not a job!!! (by S i d [MO]) Posted on: Jun 5, 2018 6:16 AM
Message:

To a bank, you don't have a job and therefore they won't loan you money.

To the IRS, rental income is passive (not "earned").

Everyone's got their view. As a wise lady once said, "I don't need EVERYONE to agree with me...I just need ONE person."

Keep looking for the one person or pay cash. --173.19.x.xxx




Bank says LL not a job!!! (by Smokowna [MD]) Posted on: Jun 5, 2018 7:08 AM
Message:

Fair is fair, I don't believe bankers actually work --108.48.xx.xxx




Bank says LL not a job!!! (by Nicole [PA]) Posted on: Jun 5, 2018 7:24 AM
Message:

asking for 50% of appraised value & 825 credit score ... get a HELOC. --72.70.xxx.xx




Bank says LL not a job!!! (by Oregon Woodsmoke [ID]) Posted on: Jun 5, 2018 8:10 AM
Message:

Try a different bank. My experience is that banks are happy to count rental income but they will only count a percentage of it.

It's definately easier to get a mortgage if you have a paycheck, but shop around and you should be able to find someone to give you a mortgage. --174.216.x.xxx




Bank says LL not a job!!! (by JB [OR]) Posted on: Jun 5, 2018 8:12 AM
Message:

Bank did the same thing to me when I was looking for a HELOC. I took out all my money and told them I was taking all my business to a credit union who actually wanted my business and got a great rate/terms. --50.45.xxx.xxx




Bank says LL not a job!!! (by Tom [FL]) Posted on: Jun 5, 2018 8:26 AM
Message:

Try the Credit Unions in your area.

Be careful so the credit unions or the banks DO NOT continue to run your credit it will hurt your score.

RentsDue of MA, PLUS if you have bank accounts with the bank that you are having problems with tell them you will be moving your accounts to another financial institution: bank or credit union.

--99.56.xx.xx




Bank says LL not a job!!! (by Robert J [CA]) Posted on: Jun 5, 2018 9:14 AM
Message:

When I went to a "bank" looking for them to lend on a shopping center, I got a lot of resistance, since I wasn't a Doctor, Lawyer or CEO of some Forbes to 100 companies. I wasn't a good risk! Never mind that I more money in that Branch/Bank than that amount I was seeking to borrow (Money between retirement, business and personal accounts). My credit score was like yours, in the 835+ range. My annual taxable income was huge, more than a doctor or accountant.

So I just had to look elsewhere for funding. What I did was contact a professional mortgage broker. They contacted their top 10 lenders and said, buyer needs a commercial loan with a large down payment. Top credit score, huge net worth and liquid assets that exceed purchase price. Within a couple of days I had 3 lender offers. One was even a low document loan that didn't want all of my personal information. --47.156.xx.xx




Bank says LL not a job!!! (by Chris [CT]) Posted on: Jun 5, 2018 12:21 PM
Message:

I know its such a joke, find a local bank.

My friend has no "job" he lives off his investments which are about $6m. Since money is cheap he tried to get a $250k mortgage on a $600k house he was buying. Bank said no income no loan...

Yet I constantly see them make shaky loans to people who are one job loss away from insolvency.

If my friend had $100k in student loan debt, a Mercedes lease or two, zero savings and a $250k year income I bet that bank would have loaned him $575k on that house...

--24.45.xxx.xxx




Bank says LL not a job!!! (by myob [GA]) Posted on: Jun 5, 2018 12:52 PM
Message:

I brought 70 SFH's VA foreclosure here in GA. most were 100% loans at the going rate for the time (5 to 8%). Applied directly to the local VA. Some were 95% loans. Comm was 6% paid from the VA funds. Realtor kept 1K and I got the rest back to cover closing and repairs. That was legal as long as it was disclosed on the "offer to purchase" form.

No stinkin lenders involved--- none. VA after closing sold all loans to outside institutions. --99.103.xxx.xxx




Bank says LL not a job!!! (by Robert,OntarioCanada [ON]) Posted on: Jun 5, 2018 1:00 PM
Message:

Here in the entire there a five major banks coast to coast. The banks here are reluctant to provide mortgages on rental apartment buildings as when a rental housing provider owns a certain number of rental units they do not work for someone else. Where if you a small rental building then continue working they willing to accept. They make it difficult even with a CHMC mortgage where the banks are provided with insurance if there is default where generally there is one per cent discount on interest. A lot of banks do not understand what is in involved that people who own rental buildings are constantly doing work around the buildings only contracting out major work like major electrical, plumbing or natural gas work. They write off all allowed expenses where the income not look impressive but in reality they are building equity. --207.164.xxx.xxx




Bank says LL not a job!!! (by Pmh [TX]) Posted on: Jun 5, 2018 2:33 PM
Message:

call Dirk Hellige @ WFB....if he can’t work it for you then no-one can. --104.218.xxx.xx




Bank says LL not a job!!! (by Jane B. [FL]) Posted on: Jun 5, 2018 3:03 PM
Message:

My friend with 500 apartments, went to our mortgage broker in Florida, in order to buy an expensive condo downtown.

She declined his mortgage app, saying, "You have a VERY creative accountant.

--24.63.xx.xxx




Bank says LL not a job!!! (by Livethedrem [AZ]) Posted on: Jun 5, 2018 11:38 PM
Message:

Next time tell them, "Of course it's not a job...it's an ADVENTURE!" :) --47.216.xx.xxx




Bank says LL not a job!!! (by elliot [RI]) Posted on: Jun 6, 2018 1:57 AM
Message:

RentsDue, my bank is very flexible.. Although it is in RI, it does biz in MA. I got a huge HELOC on my primary residence and 50% on 2 investment property HELOCs, why 50%, cos I have too many loans. :)

Let me know if you need my contact at the bank.. --71.232.xxx.xxx




Bank says LL not a job!!! (by RentsDue [MA]) Posted on: Jun 6, 2018 4:12 AM
Message:

I would love that . The real kicker is that I have the money in the bank. But if I pay the note off then I would no longer have the cash reserves for all owned properties required by the banks for any future mortgages Or the cash funding for upcoming new build. --71.10.xxx.xxx




Bank says LL not a job!!! (by myob [GA]) Posted on: Jun 6, 2018 5:21 AM
Message:

Livesthedream you beat me to it!!!!!! Put Jacks on the case-- she'll crack it. --99.103.xxx.xxx




Bank says LL not a job!!! (by Kyle [IN]) Posted on: Jun 6, 2018 6:11 AM
Message:

Find a different bank. Talk to them in advance to see how they handle rental income, what documentation they need, whether they add back depreciation, etc.

The correct way to handle debt service on rentals is to add back the interest deducted on Sch E, then subtract the full loan payment. Because the debt is for business purposes, it reduces the business income rather than adding to the debt obligations for the DTI calculation. Every bank has their own way of underwriting, so you need to find one that does it the way that works for you. --73.102.xxx.xx




Bank says LL not a job!!! (by Pmh [TX]) Posted on: Jun 6, 2018 3:05 PM
Message:

all lenders calculate dscr on noib4i&d...they want to see if you have the cash to service the loan payment. --104.218.xxx.xx




Bank says LL not a job!!! (by Dee [AZ]) Posted on: Jun 9, 2018 9:15 PM
Message:

This difference is weather you pass the test of a RE professional or are Passively involved. I am passive and my license is an individual. I was told by a CPA fewer than 4 rentals is just an investment according to the IRS, although the state/city requires a Business License and filing of a tax report along with remitting sales taxes on rents. I am Retired with other non working income and I was able to refinance my rental home through the HARP program with low equity but they required all my T's crossed and I's dotted which was a pain but they should so we don't get ourselves in another economic mess. --72.208.xxx.xx





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