DSCR, Line of Credit or something I haven't thought of?

[Lina Emory]

Hey everyone! Need a fresh set of eyes to see what makes the most sense for us.

We own a rental home on 1 acre outright with the potential for 3 more septic tanks/home sites. We need $15-30k cash to put a mobile home on the lot ASAP. Would love more capital to keep expansion the other two sites too. The rental home already rents for $1250 and again I have no mortgage. I'm a realtor and comps suggest value is $150-175k all day long. Mobile home will rent for additional $800-900.  I need to pull equity out fast, and can pay back fast- under a 3 year term works. 

The problem is I am maxed out on our DTI. Is DSCR loan the best option? Are there any Heloc/commerical line of credit options that don't require verification of funds? I am good for a credit check and can provide the lease proving $1250/m income.

What would you do?

Thank you!

[Erik Estrada]

Quote from @Lina Emory:

Hey everyone! Need a fresh set of eyes to see what makes the most sense for us.

We own a rental home on 1 acre outright with the potential for 3 more septic tanks/home sites. We need $15-30k cash to put a mobile home on the lot ASAP. Would love more capital to keep expansion the other two sites too. The rental home already rents for $1250 and again I have no mortgage. I'm a realtor and comps suggest value is $150-175k all day long. Mobile home will rent for additional $800-900.  I need to pull equity out fast, and can pay back fast- under a 3 year term works. 

The problem is I am maxed out on our DTI. Is DSCR loan the best option? Are there any Heloc/commerical line of credit options that don't require verification of funds? I am good for a credit check and can provide the lease proving $1250/m income.

What would you do?

Thank you!

 Hi Lina, 

If I am understanding your post, you are looking to pull about $30k from your SFR to build a mobile home on the same lot where the SFR is located at correct?

Assuming the property is not rural and the property can appraise for $150k, that will give you a max loan amount of $137,568 (If the property can debt cover with the $1250 monthly rental income. 

The issue you will run into is the minimum loan amount. Most DSCR lenders will require a minimum loan amount of $55k and a minimum value of $75k. So $30-$15k would not work on this loan. I would suggest looking into a business line of credit if you need such little funding.