Maximum LTV? 85% LTV? In Ohio

[Scott Starrett]

Does anyone know of a lender that is offering 85%+ LTV on rental properties in Ohio? This would be for a 4-unit building.

Looking for 30-year fixed interest, asset-based/DSCR underwriting (non-owner occupied investment property financing)

[Chris Mason]

Originally posted by @Scott Starrett:

@Nick Belsky

Thanks so much for weighing in!

Well I do like to know what all the options are, I can enter the rate (at 85% LTV) into my economic model to see which option would be most attractive. It might be that 80% LTV is the way to go, but still would like to see what the 85% looks like.

Markets find equilibrium. The 85% LTV option is sufficiently rare that it does not have rates/fees/terms that make sense for someone running an economic model. The rates/fees/terms make sense for folks that are desperate, have no choice, they're broke, they will take whatever they are offered at the unicorn LTV. Those people (broke people seeking unicorn LTVs) are functionally unlimited fish in a barrel, but they would have to first be all used up, causing a dip in demand from broke desperate people, for rates/fees/terms/etc to drop down to where they would be appealing to anyone discerning that is "running an economic model."

TLDR: Supply of what you are seeking is very short, but demand is functionally unlimited. If supply is short and demand is functionally unlimited, what's the price of that thing? Doesn't even matter what that thing is, the answer will be the same, the price can be whatever the f the entity offering the thing wants it to be. To be specific, if they have 25 full time underwriters, the price will be exactly that price (rates/terms/fees) that exactly keeps those underwriters working 40 hours per week, and not a 0.1% lower.