My work require me to travel back and forth between Beijing and the Bay Area. I spend about 2 months in the bay area, followed by one month in Beijing, and then repeat. I currently own a primary home in the bay area and also have an apartment in Beijing for about $2000 a month in rent. I would like to stop renting in Beijing and buy a second home there instead.
My original plan is to do a cash-out refinance with a bank in the US on my primary home to get some cash. I was going to max-out my DTI in the cash-out refinance while keepting the LTV of the primary home to be under 50% (I have a lot of equity on my primary home). The rent in Beijing was going to be part of this DTI. I was then going to use the cash-out as down payment for a purchase loan on the second home in Beijing through a Chinese bank. I was going to limit the size of the purchase loan such that the monthly payment on the second home would be the same as my previous rent ($2000 per month), so I would keep the same DTI profile. I definitely have no intent to hide any debt to either the bank in the US or the bank in China.
I just found out today, however, that this plan is not going to work because Chinese banks does not allow the down payment on a purchase loan to be from the equity of another home, even if the LTV is low. I am now trying to find an alternative plan. Is it possible to pay for the second home entirely using the equity in my primary home through a cash-out mortgage? How can I get the bank doing the cash-out mortgage to not count my current rent in Beijing into the DTI since it will be replaced by the second home?
