DSCR Lender Recommendations

[Bridget Vlakancic]

Looking for any recommendations on DSCR Loans that will for sure close. Looks like a lot of feedback says they are approved only to not close in the end. Thanks in advance!

[Caroline Gerardo]

Reasons why they don't close: 1. borrower doesn't tell the whole story 2. lender fails to ask questions 3. property in bad condition or C class and doesn't appraise for sale price 4. borrower believes it can rent for a lot more than the market shows 5. property weird/ancient crumbling/not habitable 6. title clouds...

Here is what you need to start to work with for DSCR at many "shops":

Loan amount above $110000, your mortgage FICO 680 middle, no forbearance/ no mortgage lates, market rent survey and rental agreement more than cover the PITI, you have a written quote for insurance, you have reserve money in your checking account, the down and closing costs are in your checking account, you have the vesting ready to go, property is not a rehab and is ready to rent, your lender broker has been in the business more than six years and can quote all the terms and ins and outs needed.

Other things you need to disclose before you start- you are borrowing the down payment from xyz, you can describe the condition of the subject, how many transactions have you closed...

DSCR loans are sold to a different market than conventional but each "shop" has what they are willing to do and can sell to their investors. Generally no exceptions. There are about 30 sources and some only lend in the prime states, not Nationwide. DSCR NonQM is a 30 year loan. There are ALWAYS points and sometimes prepays.

There are also DSCR lenders who don't wholesale broker and keep them on their books like hard money.