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Updated 10 months ago on . Most recent reply
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DSCR for first time homebuyer?
I've heard a few lenders say they can't help a first time homebuyer with DSCR.
I’m a first time homebuyer looking to purchase a single family rental property in NJ. I’m self-employed, so most likely won’t be approved conventionally.
Are there any lenders who allow 20% down DSCR for a first time homebuyer?
If not, do I have any other options at 20% down?
Thank you!
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Quote from @Erin Murphy:
I've heard a few lenders say they can't help a first time homebuyer with DSCR.
I’m a first time homebuyer looking to purchase a single family rental property in NJ. I’m self-employed, so most likely won’t be approved conventionally.
Are there any lenders who allow 20% down DSCR for a first time homebuyer?
If not, do I have any other options at 20% down?
Thank you!
This is an area that is certainly tightening up lately - almost more so as a protection against fraud (borrowers that can't qualify for a owner-occ conventional loan so they pretend to buy an investment property to get a home), but also just risk in general. So the "story" of why you are buying a SFR rental but also renting yourself should be very clear in a Letter of Explanation.
However, these cases can be looked at generally - do you have other investment experience - or is this first foray into real estate completely? Definitions can vary and be fuzzy lender to lender, program to program, and differ between "first time homebuyer" and "first time investor"