DSCR 1st timer

[Petya Toncheva]

Hello all, I am in the process of purchasing a 2 family home using a DSCR loan. This is my first time going non conventional. I am trying to figure out the numbers to see if it is profitable. Any advice from those who have done a DSCR before, would be helpful. There is a 10 yr interest only option. There is a 5 yr prepayment penalty. I am doing a cash out refi on an investment property I currently own. Heres the numbers:

Borrower(s) Subject Property Rate Not Locked

9/30/2024

Sales Price Down Payment Loan Amount 30 Year Fixed Contract Deposit Seller Concession NMLS#

$670,000.00 $167,500.00 $502,500.00 7.000% $0.00 $0.00

Bank Origination Charges Estimated Title / County / State Charges

Origination Points % $ - Owner's Title Insurance $ 4,415.00

Discount Points % 1.500% $ 7,537.50 Lender's Title Insurance $ -

Underwriting Fee		Title Search		$ -
Appraisal Fee	$ 650.00	Title Services		$ -
Credit Report Services (1)	$ 299.00	Alta 8.1		$ -
MERS Fee	$ 25.00	Recording & Transfer		$ -
Flood Certification	$ 8.00	Notary		$ -
Tax Service	$ 85.00	Settement Fee		$ -
VOE Fee	$ 150.00		Total	$ 4,415.00

Total $ 8,254.50

Prepaid Interest / Items Potential Additional Costs

Per Diem Interest 15 Days $ 1,465.63 Rental 1007 $ 250.00

Home Insurance $ 1,800.00 New Survey (if applicable) $ -

Flood Insurance $ - 2nd Appraisal / Reinspection $ -

Total $ 3,265.63 Total $ 250.00

Escrow and/or Property Taxes Due Total Estimated Monthly Payments

Total Insurance(s) 3 Months $ 450.00 Principle and Interest $ 3,343.15

Property Taxes 4 Months $ 2,868.64 Total Property Taxes $ 717.16

Total $ 3,318.64 Total Insurance(s) $ 150.00 HOA / Maintenance $ -

Monthly PMI $ -

Total $ 4,210.31

Total Estimated Costs

Estimated Closing Costs $ 12,919.50 Estimated Escrow Prepaids $ 6,584.27

Estimated Funds To Closing $ 187,003.77

[Petya Toncheva]

@Drago Stanimirovic hi, the rent will exceed the payment. I am concerned about the 5 yr PPP because I would like to refinance to a lower rate at least within 3 years. Is 5 yrs PPP typical for a DSCR loan or can I negotiate this?