DSCR loan for a condo in Chicago Suburbs

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DSCR loan for a condo in Chicago Suburbs

Mateusz Skiba
Rental Property Investor · Chicago, IL · Member since 2018 · 17 posts · 4 votes

Hello, I am currently looking to purchase a condo in the surrounding Chicago suburbs and I am looking to get a DSCR loan. The condos I am looking at range from $110,000-$140,000. My Fico is around 650. My down payment would be around 30-40%. Any recommendations or advice would be greatly appreciated, thank you.

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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
2y
Quote from @Mateusz Skiba:

Hello, I am currently looking to purchase a condo in the surrounding Chicago suburbs and I am looking to get a DSCR loan. The condos I am looking at range from $110,000-$140,000. My Fico is around 650. My down payment would be around 30-40%. Any recommendations or advice would be greatly appreciated, thank you.


 Your best course of action is going to be to really see what you can do to get your credit score up as quickly and as much as possible - you will likely be able to find options right now - but your terms are going to be much much better if you can get that credit score even up like 30-40 points

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Harpoon Capital514 Reviews
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  • Jason Taken
    Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    2y
    Quote from @Mateusz Skiba:

    Hello, I am currently looking to purchase a condo in the surrounding Chicago suburbs and I am looking to get a DSCR loan. The condos I am looking at range from $110,000-$140,000. My Fico is around 650. My down payment would be around 30-40%. Any recommendations or advice would be greatly appreciated, thank you.


     We're very local. Happy to provide some guidance. Reach out.

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2y
    Quote from @Mateusz Skiba:

    Hello, I am currently looking to purchase a condo in the surrounding Chicago suburbs and I am looking to get a DSCR loan. The condos I am looking at range from $110,000-$140,000. My Fico is around 650. My down payment would be around 30-40%. Any recommendations or advice would be greatly appreciated, thank you.


     Your best course of action is going to be to really see what you can do to get your credit score up as quickly and as much as possible - you will likely be able to find options right now - but your terms are going to be much much better if you can get that credit score even up like 30-40 points

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    6Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 664 posts · 226 votes
    1y

    Hey Mateusz! I would be cautious on looking in the lower end of that range. You'll notice a significant increase on your rates/fees as that loan amount lowers. Keeping your loan amount above $100k will have better terms, above $75k loan amount will be possible but slightly higher rates, and then below $75k loan amount most DSCR lenders will be unable to do. The most common we are working with and the ideal situation is something between $125k and $140k at 60LTV. One of the investors we are working with has a score around 680 but is looking at high 6's with a one year prepayment penalty. Happy to go through some of those options if that would be helpful for you.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group548 Reviews
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    0Reply
  • Mike H.
    Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
    1y
    Quote from @Mateusz Skiba:

    Hello, I am currently looking to purchase a condo in the surrounding Chicago suburbs and I am looking to get a DSCR loan. The condos I am looking at range from $110,000-$140,000. My Fico is around 650. My down payment would be around 30-40%. Any recommendations or advice would be greatly appreciated, thank you.


     Are you looking to buy the condo to rent it out?  You won't be able to get a dscr loan if you're going to owner occupy it.  I would be very hesitant to buy a condo as a rental property.  Those condo hoa's can do all kinds of crazy stuff to ding you - even after you buy the property.  They could very easily change the rules after you buy and tell you that you can't rent it out and the unit must be owner occupied. And then what do you do? 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Mateusz Skiba:

    Hello, I am currently looking to purchase a condo in the surrounding Chicago suburbs and I am looking to get a DSCR loan. The condos I am looking at range from $110,000-$140,000. My Fico is around 650. My down payment would be around 30-40%. Any recommendations or advice would be greatly appreciated, thank you.


    What is contributing to your 650 credit score? It may make more sense to use those funds you have saved to increase your credit score 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    1y

    Happy to connect, but I agree with the other comments - a 650 FICO is doable, but terms will be better if you can get that to 680-700 ideally. Either way, feel free to reach out!

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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