How are rental properties factored into car loans?

[GimmeSumCredit]

As most rentals do, I tend to post losses on my properties per my tax return (Interest, taxes, insurance, op ex, etc). Are these numbers ever asked for in the app process? Since I have several properties, I would assume I would need to show tax returns to show P&L, otherwise my debt would appear to high on DTI. 

 

Typically for mortgages they add back a certain amount of PITI and depreciation from your schedule C to qualify for another mortgage. What does the process look like for cars?

 

Bonus question: If I have a 100k car on order that is 1 year out and I've always owned cars in cash, what are the chances I won't be able to be approved due to no auto loan history?

 

FICO 760, gross income 150+ (mostly W2), DTI would be in the 40% range with the new car (depending on what the solution is to the above issue)

[MarvBear]

Since you have several properties does that mean you have several mortgages?

[GimmeSumCredit]

6 minutes ago, MarvBear said:

Since you have several properties does that mean you have several mortgages?

Yes

[MarvBear]

Is your stated income sufficient to service the debt shown on your credit file(s)?

[GimmeSumCredit]

Yes, all rentals are cash-flow positive but paper losses. DTI is relatively low.

[MarvBear]

Based on the information in your posts I would believe you should be approvable.

[GimmeSumCredit]

Can someone explain how banks would evaluate this situation?

[MarvBear]

Yes, I would be happy to try.   Just go into the pinned topics thread and cut and paste the Credit Application in this thread.

[GimmeSumCredit]

Okay, will do. Also, let me know if you have an idea of what I should expect to put down as a down payment

[MarvBear]

1 hour ago, GimmeSumCredit said:

Okay, will do. Also, let me know if you have an idea of what I should expect to put down as a down payment

You can tell me th amount of the down payment in the application you submit.

[GimmeSumCredit]

Your Age:

Your Equifax Credit Score:750
Your Experian Credit Score:752
Your TransUnion Credit Score:760

How long have you been on file with the CRA?s? - Never

Previous Automotive Credit History: - N/A - Never financed a car
Do you have an open auto loan?
Will this loan be a trade-in?
Number of late pays within the last 12 months on the currently open loan?
Number of late pays within the last 13-24 months on the currently open loan?
Current open auto loan is financed with?
Current open auto loan payment is?
Estimated amount you may be upside down in this vehicle?
Rate your payment history on this open auto loan from 1-10 (10=BEST)

 

I have read and understand the original pinned "No Credit Check Required" topic. - Yes

Revolving Credit History: 
Total number of revolving accounts? - 10 
Total percent utilization overall? - 4%

Your Information:
How long at residence? - 3.5 years
Rent/Homeowner/Live with relative? - Own
How long at current job? 1.5 years
Total Provable MONTHLY GROSS INCOME? 125000
Provable via computerized paystub or what method?

80% from w2 paystub, 20% from 1099

Your Downpayment in CASH:
Rebates not considered; Trade Equity not considered: CASH ONLY PLEASE INPUT. - 10k-30k

Does any credit repository contain any Public Record?
Is so, please describe. - No

Does any credit repository contain any Collection Account(s)
If so, please describe. - No

New or Used Vehicle you are considering; please describe: New - Lotus Emira

Your creditworthiness on a scale of 1-10 with 10 being the best:
OVERALL credit: 10
Installment Credit History: No derogatory remarks
Revolving Credit History: No derogatory remarks

[MarvBear]

14 hours ago, GimmeSumCredit said:

Your Age:

 

You did not answer

14 hours ago, GimmeSumCredit said:

How long have you been on file with the CRA?s? - Never

If you have never been on file with the Credit Reporting Agencies, it would be impossible to have a FICO score.

 

Your application would normally be withdrawn if you don't supply the requested information.

[GimmeSumCredit]

Age: 29

 

CRAs: I wasn’t sure what that meant at first but I have accounts dating back to 2015 (8 years) Average age of credit is 3.8

[MarvBear]

What is the largest installment loan on any credit file, not including mortgages or student loans?

[GimmeSumCredit]

2 hours ago, MarvBear said:

What is the largest installment loan on any credit file, not including mortgages or student loans?

$0. (N/A). The only reason I have 4% usage for revolving credit is because the credit snapshot is sometimes taken mid-month, but I do pay my revolving revolving credit off each month.

[MarvBear]

A word of caution, or advice from an incredibly old bear.   When dealing with an application don't offer information that was not requested.

 

I believe you can be approved, but you may not like the terms that are available/offered.   The automotive landscape has changed tremendously in the last 2-3 years, so who knows what marketplace conditions will be one year hence.

[GimmeSumCredit]

1 hour ago, MarvBear said:

A word of caution, or advice from an incredibly old bear.   When dealing with an application don't offer information that was not requested.

 

I believe you can be approved, but you may not like the terms that are available/offered.   The automotive landscape has changed tremendously in the last 2-3 years, so who knows what marketplace conditions will be one year hence.

Are there any factors that I can improve between now and then? Being that I am one year out. (Car is on order)

[MarvBear]

Yes, I believe so.   Save money for as large of a down payment as you cannot comfortably like.   A lower Loan To Value number is always in your favor.

[hoapres]

If you have an established relationship with a banking institution that holds multiple mortgages then you might want to talk to that financial institution to see what can be offered.  I don't know the extent of your real estate holdings but it might be possible to write off the interest of the auto loan off your taxes should you be able to establish that the use of the auto is related to your business.