DSCR loans but what about the DOWN?

[Nina Gibson]

Hi,

My brother and I just started an LLC. We want to start either flipping small or investing in multifamily properties, but the 20-25% down concerns me. If the DSCR loan covers the 80% where to we get a loan for the other 20%? Or do we need to have that saved as cash going into this investment. Assistance is greatly appreciated. We are looking from LA to San Diego, so if any one can help or refer someone with answers that would be excellent.

Thank you,

Nina

[Sam Yin]

@Dan Heuschele

DITTO

It's been EXTREMELY tough to find LTVs higher than 70. Not impossible, but almost. the last time I was able to even get 75% was last year. Most DSCR loans currently have been penciling out to about 65% LTV or less. Additionally, I have been noticing lenders requiring higher reserves. It use to be 3 to 6 months. Now I'm seeing more 6 to 9 months of reserves.