Best DSCR loan to value (LTV) rate you've seen, gotten or lended?

Question

Hi There - I'm curious what sort of rates folks are seeing (and actually getting) whey they give or acquire a DSCR loan? I've been quoted around 80% for a cash-flowing property, but curious if folks are seeing more competitive options nowadays?

Jared Rine · Answer

@Stephanie P...yea, for Friday it was LOL...even that particular source has increased their bottom line to re-price with the rest of the market and the trend. So they're definitely not setting themselves apart anymore.

Janelle K. Eagle · Answer

These are great numbers. I’m in Central CA myself and totally understand that the numbers in this state make it hard. Getting in with 20% is a bigger obstacle when it’s not a primary residence, so I appreciate the market data on what’s competitive out there.

Jared Rine · Answer

@Janelle Eagle-Robles ...are you looking for something in particular? I'm still quoting up to 85% LTV on purchase, but it's tough to make the numbers necessarily work in CA, obviously depending on location. As for rates, most lenders seem to be repricing for the worse, but I just quoted someone today at 5.00% (with 1pt lender buy down), 80% purchase money, 725 credit, 3-unit. $600k pp. Central Valley location in CA ..don't know if that helps, but just my $0.02

Matthew Crivelli · Answer

We are quoting people at 6% - 7% and we are being told to brace for rates that are 7%-8% in the near future. Anyone who is telling you 5%-6% hasn't talked with their DSCR lender in the last week or two. This product will continue to become harder to qualify for, it's not easy cash flowing at these rates.

Stephanie P. · Answer

Those are really strong numbers right now.

Jonathan Taylor · Answer

@Janelle Eagle-Robles three things to consider to prove accurate ranges are the DSCR of the subject property, loan amount and credit of the client. Lower loan amounts (sub 150k) have higher rates for the same borrower with higher loan amounts. If DSCR is 1.2/1.15 or below, some lenders tack a .125-.25 rate increase. For investors with a FICO of 740+, rates are more favorable. So for LTV at 80% purchase ranges are mid 5s to mid 6s but if LTV is 5% less rate gets better. C/O is limited at 75% at this time with my lenders. More details are needed to accurately quote rate. Hope that helps.

Brenna Carles · Answer

@Janelle Eagle-Robles some are still offering 15% down but most are getting rid of it. It is usually 20% down minimum. The rates continue to rise as the Fed increases the cost for rates. Currently, base pricing for a DSCR loan with great credit is 6.125% with 2 points. Some DSCR lenders do not allow you to lock in until they are about 5 days out from closing but some will allow to lock for 30 days. Hope this helps!

Best DSCR loan to value (LTV) rate you've seen, gotten or lended?

Best DSCR loan to value (LTV) rate you've seen, gotten or lended?

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