sources of DSCR lending

[Edna Salinas]

New to DSCR loan. Does local credit unions do DSCR lending, or one must get it through broker or a loan officer? I am in Phoenix area, any suggestion of good source for that? Thanks.

[Riaz Gillani]

It's pretty unlikely to get a DSCR loan from a Credit Union. It's tough to keep these loans (given they're usually 30 year terms) on one's balance sheet (if not impossible). Luckily the 10-12 national players have a nationwide reach. Give whomever you see in the forums a quick message and schedule a phone call to chat and discuss what the process looks like.

Red Flags: Placing a Deposit, Extremely Low Rates (There's nothing in this space below 5.99% and even that's pushing it), very high LTV's (I've never seen anything higher than 85% and again, that is pushing it...). Like someone mentioned above, these loans are either boarded onto a warehouse line post-closing or included in a mortgage pool to underly a securitization. You can't really stray away from the pact ....