What has been your experience with DSCR loans?

[Bernadeau C.]

What has been your experience with DSCR loans, especially for 2-4 units?

I am planning on using one for the first time. 

[Jonathan W.]

@Bernadeau C.

Can you say easy if you have good credit and equity. Rates and fees a bit higher.

[Elise Marquette]

@Bernadeau C. They are much easier to qualify for abs get approved since they don't look at your personal income. Since Fannie Mae limited their portfolio of rental properties we are seeing DSCR loans have pretty comparable rates to conventional.

[Chris Mason]

Originally posted by @Bernadeau C.:

What has been your experience with DSCR loans, especially for 2-4 units?

I am planning on using one for the first time. 

 Due to the FHFA Fannie/Freddie penalty, they are no longer a total ripoff relative to Fannie/Freddie. More or less, with the DSCR loans, if you're getting a good deal, you can get approved. The rates/fees vary based on:

- Just how good of a deal are you getting? Lower risk, lower rates and fees.

- How fast does it need to close? The best priced lenders in the DSCR space, needless to say, are swamped with business, and thus closing slower.

[Nick Belsky]

Quick and easy.  Rates are higher than conventional, but if you have issue verifying income and employment history, they are a no brainer.

[Stephanie P.]

Originally posted by @Bernadeau C.:

What has been your experience with DSCR loans, especially for 2-4 units?

I am planning on using one for the first time. 

They close infinitely easier than Fannie/Freddie

If you're closing in Florida, you need an entity like an LLC or S-Corp.

Stephanie

[George Despotopoulos]

@Bernadeau C. you should be able to get some pretty attractive terms on 2-4 unit properties from a DSCR lender. The process should also be much more straightforward and quicker than other sources of financing. It's important to talk to a few lenders and get a feel for terms and responsiveness.

[Dustin Lauer]

@Bernadeau C. I've been lending with them since 2012 and it's never been as good as it is right now. Rate compression today is great in this space. We're seeing low 4s regularly. It's awesome. I love DSCR loans.

[Dustin Lauer]

@Jonathan W. One of our loan officers just moved to KCK. Also named Jonathan. You guys should connect. He’s at all the networking events in town.

[Nick Louie]

@Dustin Lauer

Do you happen to know of any DSCR loan officers in New York City?

[Vincent Chen]

@Stephanie P. Other than process and term, how about leverage, how much downpayment or refinance rules?

[Chris Mason]

Originally posted by @Vincent Chen:

@Stephanie P. Other than process and term, how about leverage, how much downpayment or refinance rules?

@Vincent - it's all about how good of a deal you get. Better rent to price ratio = more leverage. 

[Max T.]

@Chris Mason

Are these with 30% down?

[Timothy Hero]

Originally posted by @Stephanie P.:

Originally posted by @Bernadeau C.:

What has been your experience with DSCR loans, especially for 2-4 units?

I am planning on using one for the first time. 

They close infinitely easier than Fannie/Freddie

If you're closing in Florida, you need an entity like an LLC or S-Corp.

Stephanie

This is not true. I broker in 45 states, with Florida being my third largest market, and half my deals in Florida are closed to individual borrowers with no entities.

[Stephanie P.]

Originally posted by @Timothy Hero:

Originally posted by @Stephanie P.:

Originally posted by @Bernadeau C.:

What has been your experience with DSCR loans, especially for 2-4 units?

I am planning on using one for the first time. 

They close infinitely easier than Fannie/Freddie

If you're closing in Florida, you need an entity like an LLC or S-Corp.

Stephanie

This is not true. I broker in 45 states, with Florida being my third largest market, and half my deals in Florida are closed to individual borrowers with no entities.

That's great news for you, but that's not been my experience.  Thanks for letting me know.

[Salvatore Lentini]

@Bernadeau C. I work with a lot of these types of investor friendly lenders to build my portfolio and helping others build theirs.  Traditional lenders can make it difficult to scale a rental portfolio quickly.  I never would've gotten to 127 rentals without using these types of lenders.

[Chris Mason]

Originally posted by @Max T.:

@Chris Mason

Are these with 30% down?

@Max T. - Sometimes. Depends on if that's needed to make it sufficiently cashflow positive. 

[Bernadeau C.]

@Salvatore Lentini sounds good. I think from now I will plan on using only them so I can scale a bit faster!

[Dustin Lauer]

@Nick Louie yes I’ll gladly connect you with a top loan officer that handles these.

Happy to help! Please DM

[Dustin Lauer]

@Vincent Chen hard to find enough cash flow in some markets for the full 80% LTV but it's achievable especially in 2-4 unit properties. Little to no restrictions at all. These are very easy loans to close. Appraisals take time and cost more than they should. DSCR loans are amazing right now. Never been this good my career since 2009.