Does JVing qualify you for the 1.1DCR

[aleksei]

Hi everyone,

Quick question here:

Suppose I were to JV with three other investors for my first three properties. Rent from all three properties covered expenses by at least 1.1. Would I now qualify for the 1.1DCR financing??? If so are there any other specific criteria that must be met by me to qualify for the 1.1DCR financing, for example my name being registered on the title??? If not, why not, and what will I have to do to qualify for this financing???


THanks
Alex

 

[PeterKinchMortgageTeam]

QUOTE (aleksei @ Aug 15 2008, 11:38 AM) Hi everyone,

Quick question here:

Suppose I were to JV with three other investors for my first three properties. Rent from all three properties covered expenses by at least 1.1. Would I now qualify for the 1.1DCR financing??? If so are there any other specific criteria that must be met by me to qualify for the 1.1DCR financing, for example my name being registered on the title??? If not, why not, and what will I have to do to qualify for this financing???


THanks
Alex


If you are on title and mortgage, you should be able to use those properties to help you qualify under the 1.1 rule. If you are not on title/mortgage - they would not be included on the DCR. They would however be included as part of your net worth.

While all DCR applications are looked at on a case by case basis, If the overall portfolio and the subject property(based on economic rents) are 1.1 - you should be okay. Depending on the strenght of you application and portfolio, you may be asked to confirm income and liquid net worth.

Hope that helps,

 

[aleksei]

Thank you very much for the quick reply, just the answer i was looking for.