DSCR Loans, caught holding the bag

[Adrian Thomas]

Hello BP family,

I recently bought my 3rd rental property in Salina, KS using a HELOC that I have on my primary residence (CA). I did a cosmetic rehab and rented out the home 12/1. I went to my local bank that I've refinanced the previous two rentals with, and they told me the way rates are rising they will no longer refinance any further properties due to my DTI (I co-signed for my mother on her primary residence in April 2022). I've contacted and spoken with several local banks and they all have informed me until my mother comes off my DTI they won't be able to give me a loan since it looks like I'm underwater on paper.

Another issue is that the property ARV is 85k, and with most DSCR lenders minimum loan amounts being 75k, the rental won't qualify since the loan amount I'm seeking is around 60-65k at 75% LTV. It's currently rented for 1000/month

Is there a DSCR loan available that has a 50k minimum loan amount so I can refinance this property and continue to purchase property?

Thanks for your help,

[Jack Tulloch]

Hey Adrian. If you are unable to find a DSCR lender who allows for that loan size, you may want to try finding a true private lending individual who who will fund this for you. There are lots of people out there who lend out their personal capital to investors like your self.