Buy down points on commercial loan for SFR property

[Benjamin Giles]

Has anyone had success in buying down rates on single family with commercial loan? Also, from any lenders out there...are the same number of points available for purchase as with a standard residential mortgage? (seems like 3-4 points is the max out for most)

[Nate Herndon]

o Commercial loan, sort of - they are 30-year fixed DSCR loans with private national lenders.

o We close in an entity/LLC 99% of the time - very rarely do we receive a request to close in someone's personal name. Though we can do that, LLC is preferred by most of my clients.

o Individual credit will be used for determining max leverage (80% LTC is highest available) and interest rate.

o Personal income, taxes, and debt-to-income ratio will not be utilized. Debt Service Coverage Ratio loans (DSCR) utilize the potential property income for qualification, not your own.