Really sucks...

You can't get mortgages anymore unless you have W2 income, perfect credit and you plan on living in the house, ie its your only one. Investors are just about screwed.

I have a paid off house that's rented and wanted to take out a mortgage at 50% LTV to free up my cash. Nope. Another investor I know ran into the same problem, he wanted to take out a small loan on a couple houses. He has no W2 income but about $5m in paid off properties, and several hundred thousand in the bank. Nope, doesn't fit the new criteria!

Anyone else running into this with their rentals?

I find it amazing they won't give me a small residential loan but are falling over themselves to give me a much larger commercial portfolio loan.

The mortgage market has gotten to tight, unless you fit into a very specific spreadsheet the won't originate a loan to you because they can't sell it on the secondary market.

I have no idea how an investor would build a SFH rental portfolio unless they had strong W2 income, even than your limited. The old buy for cash, fix up rent, refi out the cash and repeat method doesn't seem to work anymore?

That's what's holding this economy back, just like they say all the time on Shark Tank. Small business's can't get credit, the lending standards are to tight. The banks have a ton of cash they are sitting on and they can't lend it out!

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2006 CL500
1969 280SE
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