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Updated 11 months ago on . Most recent reply

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74
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16
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Dana Powell
16
Votes |
74
Posts

Recommendation of lenders who use leases vs market rent for DSCR

Dana Powell
Posted

At 4% interest, I bought investment properties which easily met a DSCR of 1 or greater, even when using the market rental value which was always less than the actual rent I receive from my tenants' federal housing choice vouchers (HCV). However, with the rise in interest rates, I am fairly certain that a threshold ratio of 1 will not be met.

If I were able to acquire my next investment through cash and/or bridge loan, install my section 8 tenant and show a couple of months of rental payments, is there a lender out there that would use that lease and its accompanying Housing Assistance Payment contract I would have with the local housing authority? The DSCR using market rent is more like .50.

Thanks in advance!

Most Popular Reply

User Stats

74
Posts
16
Votes
Dana Powell
16
Votes |
74
Posts
Dana Powell
Replied

Thanks.  Have a call scheduled with Bennett Abel tomorrow!  Any other recommendations?

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