I’ve run into the same thing—one lender wouldn’t even look at my rental income, while another was fine with it as long as I had leases and deposits documented. It’s wild how subjective it can be. Sometimes I wonder if underwriters just flip a coin...
It’s wild how subjective it can be. Sometimes I wonder if underwriters just flip a coin...
Honestly, it really does feel like that sometimes. Lenders all have their own risk tolerance and guidelines, but even then, two underwriters at the same bank might interpret things differently. I’ve seen clients with solid rental income get pushback just because the paperwork wasn’t “perfect.” It’s not always black and white—sometimes it comes down to how comfortable the lender is with your documentation. Just goes to show, shopping around really matters.
Yeah, I totally get what you mean. It’s crazy how two files that look almost identical on paper can get completely different responses depending on who’s looking at them. I’ve had times where I thought my DTI would be a dealbreaker, but with the right lender and a little extra documentation, it worked out. Sometimes it honestly just comes down to persistence and not giving up after the first “no.”
Not gonna lie, I used to stress out about DTI way more than I needed to. Everybody makes it sound like it’s a hard cutoff, but in practice? Not always the case. Lenders are people too, and sometimes they’ll look past a high DTI if there’s enough compensating factors—solid reserves, strong rental history, maybe even just a good story about why your numbers look the way they do.
Had one deal where my DTI was a hair over their “limit,” but because I had cash flow from other properties and could show consistent rent coming in, they let it slide. The underwriter called it “borderline” but said my track record helped. Honestly, sometimes it feels like you’re just rolling the dice with who picks up your file that day.
Bottom line: yeah, persistence pays off. And if you get a “no,” just treat it like a speed bump instead of a brick wall... unless you’re trying to finance your fifth Airbnb with no reserves—then maybe take the hint.
HIGH DTI ISN’T ALWAYS A DEALBREAKER, BUT…
I get where you’re coming from—DTI can look like a hard line in the sand until you’re actually in the weeds with an underwriter. I’ve seen a few situations where someone’s DTI was technically over the “limit” but they still got approved because of other strengths, like you mentioned. But I’m always a little skeptical when people downplay it too much. Not every lender is flexible, and sometimes it feels like you need to hit the right combination of compensating factors *and* have the right person reviewing your file.
Curious if anyone here has ever had a lender actually suggest ways to improve their DTI or offer alternative products? Or is it usually just a straight yes/no with maybe some vague feedback? I’ve heard stories both ways, but in my experience, most just hand you a denial letter and move on unless you push back. Maybe it depends on the size of the bank or how much business you’re bringing them...