Multifamily investing PML funding

[Tiffani Suarez]

Primarily buy and hold SFR. Recently have been looking into investing in multifamily. Do DSCR lenders require the 20% down payment like traditional loan products. Or would a PML be able to help with long term PML loan to purchase MF? I have some capital to cover some of the DP, but would rather not use that. New to MF investing and still learning the underwriting process. Any information or help is appreciated.

[Ray Hage]

Quote from @Tiffani Suarez:

Primarily buy and hold SFR. Recently have been looking into investing in multifamily. Do DSCR lenders require the 20% down payment like traditional loan products. Or would a PML be able to help with long term PML loan to purchase MF? I have some capital to cover some of the DP, but would rather not use that. New to MF investing and still learning the underwriting process. Any information or help is appreciated.

Most PMLs will only want to loan for shorter term goals like flipping or bridging your loan. As a PML, I generally like to have all my money plus a high interest within 6 months. You will be better off with a DSCR for the long term. Some lenders require as low as 10% but I haven't see it too often. @Ash Hegde want to weigh in on this?