Best DSCR lenders right now

[Austin Bouchard]

Who has the best rates on DSCR Purchase or rate and term refi (without charging crazy origination - preferably 2 points or less)? Will be above a 1.2 DSCR and LTV will be between 50 and 60% on a good B class rental. Any input is appreciated.

[Devin Peterson]

Quote from @Austin Bouchard:

Who has the best rates on DSCR Purchase or rate and term refi (without charging crazy origination - preferably 2 points or less)? Will be above a 1.2 DSCR and LTV will be between 50 and 60% on a good B class rental. Any input is appreciated.

I’m going to recommend looking into the find  a lender tab. I’m also going to make a blanket statement for every lender and investor out there who isn’t quite understanding of the lenders and work they do. A successful tip from billionaire business moguls and likes of Alex Hormozi. Don’t be so quick to search for CHEAPEST cost. 1. You request cheap, you get cheap service. 2. There is a good reason a reputable lender will and rightfully has the ability to charge 2-2.50% 3. Don’t undermine the work and battles lenders have fight on behalf of their clients to make you (all investors) look good. I’ve seen folks inquire a lot about “cost” be exorbitant but it’s not for the world to set the payroll of the persons assistance they are requesting of.

On another note, with that good of an LTV and DSCR - if credit is in good shape you should be in the low 7’s todays market. Good luck!

[Robin Simon]

Quote from @Austin Bouchard:

Who has the best rates on DSCR Purchase or rate and term refi (without charging crazy origination - preferably 2 points or less)? Will be above a 1.2 DSCR and LTV will be between 50 and 60% on a good B class rental. Any input is appreciated.

 I'd agree with @Devin Peterson, best way to get this answered is to get a few quotes from different lenders and compare - either on BP Find a Lender or just googling (also if you post a version of this in the Classifieds subforum - or it might get moved there, you can interact directly with DSCR Lenders here - although this subforum is more about technical questions).

[River Sava]

Hi Austin, 

With the leverage and DSCR ratio mentioned you should be in a solid position. Also, if you are willing to have a couple of points that will buy down the rate further. Sending you a dm to connect!

[Erik Estrada]

Hey Austin, 

at a 50-60% LTV on a DSCR loan you should be able to get an attractive rate. This will depend on your credit and experience.

Regarding the fees, that will highly depend on the size of the loan. If it's a baby loan $100k or less, expect high fees and very few lenders willing to give it much attention. 

I would narrow your search to who is the most reputable, hungriest, and priced well for the work performed (not the cheapest). 

[Trent Jones]

Quote from @Austin Bouchard:

Who has the best rates on DSCR Purchase or rate and term refi (without charging crazy origination - preferably 2 points or less)? Will be above a 1.2 DSCR and LTV will be between 50 and 60% on a good B class rental. Any input is appreciated.

 Austin, will send you a PM. We can certainly help with this scenario.

[Mark Munson]

Hi @Austin Bouchard

As others have said, use the Find a Lender tab. Get multiple quotes and make apples to apples comparisons. Assuming good credit, with that LTV, you should be near 6.5%. You shouldn't need to do a buy down and the break even on a buy down can be 4 years on average. Above a 1.25x DSCR may get you a further reduction on your rate, but floor rates are around 6.5% with most DSCR lenders. Assuming a $150k+ loan size, you should be at or lower than 2% on origination fees. Lastly, just make sure the lender is rate locking you and don't pay any upfront fees. Best of luck and feel free to reach out if you need any more advice.

[Scott Wolf]

Quote from @Austin Bouchard:

Who has the best rates on DSCR Purchase or rate and term refi (without charging crazy origination - preferably 2 points or less)? Will be above a 1.2 DSCR and LTV will be between 50 and 60% on a good B class rental. Any input is appreciated.

Hey Austin, depending on experience, our best rates for something like that would be 5.79% for a 60% LTV on a purchase for a SFH.