Can DSCR loans be given with lower than a 20% down?

[Natasha Shamoon]

Hi everyone, first time home buyer, I'm purchasing in Baltimore, MD and am looking to see if anyone can offer or knows of anyone who offers DSCR loans with possibly a lower rate than 20% down

Thank you!

[Timothy Howdeshell]

Hi Natasha, 

Welcome to the forums and congrats on getting started! 

I looked up median home price in Baltimore and came back at $200k. Therefore a 5% difference is only $10k. I realized that this may be a lot of money, but in real estate investing $10k can go pretty fast.

As this is your first property, out of state, I don't recommend trying to "game" the lending products. Use what is commonly available and accessible (80% LTV loans, no cash-out 30 yr fixed product). You don't need to use a DSCR loan unless you're buying properties that don't conform to standard guidelines or are trying to do cash-out refinances prior to the 12-months seasoning.

It will be safer, and you'll sleep better, if you can: get the additional $10k from working, get a 5% discount on a house, find a property where you can add value through renovations or re-purpose and end up <75% LTV (aka., buy at a discount). Don't put your last $10k into a home as you need reserves and something will go wrong.

It may take more time, but you want to do this right and not hate your life or get wiped out on the first property. Best of luck!