looking for investor friendly lenders

[Kristin Vegas]

looking for mortgage broker, lender.  I live in California and planning to move in Illinois. I own 2 rental properties, the first one is paid in cash and the second one i have a mortgage on it which i pay 464 in total including tax and insurance, trying to see how much i would qualify using only my rental income while i look for a job once moving there in il

having a hard time qualify for a loan since they cant use my job income that i have here in cali, been told that I need to move there first and work at least 1 month and then apply or I need a job offer letter. I'm trying to qualify using just rental income for now.

has anyone been thru the same thing, if so how did you guys did it

godbless you all !

[Logan Singleton]

Hi Kristin,

Most DSCR lenders won't check your personal income/tax returns. Nine times out of ten, they won't even request them since they will use the property's projected income to see if it's enough to cover the projected monthly PITI payment. As far as moving, most DSCR lenders will allow you to be an out-of-state investor. I am happy to assist if you have any further questions.

[Devin Peterson]

Quote from @Kristin Vegas:

looking for mortgage broker, lender.  I live in California and planning to move in Illinois. I own 2 rental properties, the first one is paid in cash and the second one i have a mortgage on it which i pay 464 in total including tax and insurance, trying to see how much i would qualify using only my rental income while i look for a job once moving there in il

having a hard time qualify for a loan since they cant use my job income that i have here in cali, been told that I need to move there first and work at least 1 month and then apply or I need a job offer letter. I'm trying to qualify using just rental income for now.

has anyone been thru the same thing, if so how did you guys did it

godbless you all !

Sounds like you are looking for a loan for a new primary residence do I understand that correctly? DSCR loans are strictly for business purpose use only and cannot be used as owner-occupied. Maybe the best bet is a rental refi on one of the two existing properties to be able to get a new home all cash?

[Kristin Vegas]

Quote from @Logan Singleton:

Hi Kristin,

Most DSCR lenders won't check your personal income/tax returns. Nine times out of ten, they won't even request them since they will use the property's projected income to see if it's enough to cover the projected monthly PITI payment. As far as moving, most DSCR lenders will allow you to be an out-of-state investor. I am happy to assist if you have any further questions.

 first of all thanks for responding and yes I have some questions, I will text you

[Stacy Raskin]

If the properties you're buying are going to be investment properties, DSCR loans can be a good option if you don't or can't do an income based loan.

DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further. I'll send you a message. 

[Paul De Luca]

Quote from @Kristin Vegas:

looking for mortgage broker, lender.  I live in California and planning to move in Illinois. I own 2 rental properties, the first one is paid in cash and the second one i have a mortgage on it which i pay 464 in total including tax and insurance, trying to see how much i would qualify using only my rental income while i look for a job once moving there in il

having a hard time qualify for a loan since they cant use my job income that i have here in cali, been told that I need to move there first and work at least 1 month and then apply or I need a job offer letter. I'm trying to qualify using just rental income for now.

has anyone been thru the same thing, if so how did you guys did it

godbless you all !

 Hey Kristin, I can connect you with a few investor-friendly lenders if you like. Feel free to PM me.

[Sarah Nouri]

Hi Kristin, 

For DSCR loans, personal income is not required. These type of loans typically look at your credit score, the down payment, and the potential rental income of the property. DSCR lenders don't require w2's, tax returns, or pay stubs to qualify you for a loan. If these are investment properties you are looking to purchase then, DSCR loans may be the better option for you.

Hope this helps! 

[Erik Estrada]

Quote from @Kristin Vegas:

looking for mortgage broker, lender.  I live in California and planning to move in Illinois. I own 2 rental properties, the first one is paid in cash and the second one i have a mortgage on it which i pay 464 in total including tax and insurance, trying to see how much i would qualify using only my rental income while i look for a job once moving there in il

having a hard time qualify for a loan since they cant use my job income that i have here in cali, been told that I need to move there first and work at least 1 month and then apply or I need a job offer letter. I'm trying to qualify using just rental income for now.

has anyone been thru the same thing, if so how did you guys did it

godbless you all !

Sounds like you might need to do a 12 month bank statement program and use the rental income deposits as qualifying income. Is the property held under an entity? Have you created a rental business? Have you collected income for the past 12 months? 

Or another work around is taking on a DSCR loan on your current investment property and using the cash out to buy another property.

[Kristin Vegas]

Quote from @Devin Peterson:

Quote from @Kristin Vegas:

looking for mortgage broker, lender.  I live in California and planning to move in Illinois. I own 2 rental properties, the first one is paid in cash and the second one i have a mortgage on it which i pay 464 in total including tax and insurance, trying to see how much i would qualify using only my rental income while i look for a job once moving there in il

having a hard time qualify for a loan since they cant use my job income that i have here in cali, been told that I need to move there first and work at least 1 month and then apply or I need a job offer letter. I'm trying to qualify using just rental income for now.

has anyone been thru the same thing, if so how did you guys did it

godbless you all !

Sounds like you are looking for a loan for a new primary residence do I understand that correctly? DSCR loans are strictly for business purpose use only and cannot be used as owner-occupied. Maybe the best bet is a rental refi on one of the two existing properties to be able to get a new home all cash?

 yea planning in moving in it so dscr wont work for me 

[Kristin Vegas]

Quote from @Sarah Nouri:

Hi Kristin, 

For DSCR loans, personal income is not required. These type of loans typically look at your credit score, the down payment, and the potential rental income of the property. DSCR lenders don't require w2's, tax returns, or pay stubs to qualify you for a loan. If these are investment properties you are looking to purchase then, DSCR loans may be the better option for you.

Hope this helps! 

 hi Sarah, my credit score now is 666 and what is the minimum I can put for down payment on dscr loan

[Sarah Nouri]

Typically the minimum down payment requirement for DSCR loans are 20%.

[Patrick Williams]

I've got a lender that asks for 15% down on bank statement, DSCR, or asset based loans. If you're interested, DM me.

[Anderson S.]

Hi Kristin,

If you're planning to finance real estate in Illinois using only your rental income from properties in California, a DSCR loan might be a great option for you, especially since traditional income-based loans might not be feasible without local employment.

A DSCR loan focuses on the property's ability to generate income rather than your personal income from employment. This type of loan is particularly advantageous for investors who wish to leverage rental income without the need for employment verification.

Lenders will examine if your property is cash-flow positive based on a DSCR ratio greater than 1. Lenders typically prefer to offer loans when the property is cash-flowing; if the DSCR is under 1, it might still be possible to get a loan, but expect less favorable terms.

Understanding these elements will help you better prepare for securing a DSCR loan, allowing you to leverage your rental properties effectively for further real estate investments. We can offer some help, just message us!

[River Sava]

Hi Kristin - 

As othes have mentioned, a DSCR would be a great fit as they do not require DTIs/personal income verification. Below is an article that you might find helpful. I also sent you a dm to discuss further!

https://www.biggerpockets.com/blog/what-documents-do-you-nee...