DSCR-type Construction Loans?

[Jonathan Schwartz]

Any recommendations for lenders who have a loan product for a DSCR construction loan? We are purchasing land in OBX and have a great builder lined up to build us what should be a tremendous rental property. The total cost of project is more than we can qualify for based on personal income, although our W2 income and credit score all work in our favor. Hoping to find a way to purchase myself rather than bring on an equity partner.

[Andrew Postell]

@Kevin Fowlks thanks for the post here. Guess this is one that I missed from 2 years ago - but basically construction loans don't work this way. Construction loans don't care about the properties income (DSCR loans do) but construction loans do care about you making the payments while the home is under construction and then REFINANCING out of the construction loan after the construction is complete.  So, you would refinance into a DSCR loan if you were keeping the property type of thing.  Just about all construction loans require construction experience too.  Granted, I can't speak for all 8,000 lenders in the US here...but that's how the majority of construction loans work.

Hope some of that helps in some way.