Does anybody know of a DSCR Lender who does Adult Family Homes?

Question

Hello,

I have a client with an adult family home in Washington State, they are looking to do a cash out refinance.

Here is the property info: $570,000 Appraised Value, $2829 Annual Insurance, $3,000 Market Rent, $4,200 Actual Rent, $5,175 Annual Taxes.

Borrower has a 720 Fico, and owns 4 other properties, let me know if you can do this.

Thanks

Nick Belsky · Answer

Ok.  This is an Assisted Living Residential (ALR).  These are tough.  Most lenders who do these will be bridge or very short term loans, say 3/5/7 years, however, some may still be doing 30 year terms on them.  If they qualify comes down to if the home is zoned for such use and is permitted by the city/county for such use.  Many lenders will consider this commercial use, so a standard DSCR program will not lend to it.  Athas Capital used to be the king of ALRs before COVID, but since they have closed up shop, I've not seen any lender offer very competitive terms on ALRs.  Do you know if the current zoning allows this use and are permits in place (if required)?  Usually, lender review the internal photos as well to ensure it can be easily converted back to residential use easily as well.

Cheers!

Nick Belsky · Answer

What specifically do you mean by Adult Family Home?

Charlie Cameron · Answer

I have a friend who specializes as a real estate agent for assisted living in Washington State. She definitely has lenders who can help. Happy to connect you.

Virginia VanOeveren · Answer

Hi Dustin, I sent you a message! Let's connect

Jacqueline Wright · Answer

For your client's cash-out refinance on an adult family home in Washington State, it would be helpful to reach out to lenders who specialize in DSCR loans, especially those experienced with unique property types like adult family homes.Contact Local Lenders: Start with local banks and credit unions in Washington that offer DSCR loans, as they may have specific programs tailored for adult family homes.

Dustin Tucker · Answer

The borrower has a SFR, the are renting out to a tenant, who is running a Adult Family home/ Hospice operation.

Does anybody know of a DSCR Lender who does Adult Family Homes?

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