ISO: DSCR lenders in FL and GA

[Kailey Van Camp]

Fellow investors, I need a referral for DSCR lender in FL and GA. Thanks!!

[Andrew Garcia]

Hey @Kailey Van Camp, I know a great lender licensed in FL and GA for DSCR loans.

Let's connect!

[Kailey Van Camp]

Quote from @Andrew Garcia:

Hey @Kailey Van Camp, I know a great lender licensed in FL and GA for DSCR loans.

Let's connect!

 Thanks!

[Kevin Woodard]

Be on the lookout, I'll be reaching out!

[Kevin Post]

Hey Kailey,

I have several banks I work with that offer a ton of DSCR products in both states. Let me know if I can answer any questions

[Tracy Tippett]

Hello Kailey,

TNT Funding Associates LLC is an independent loan broker and financing advisor located in Florida. You can find out more at: https://tnt-funding.com

[Matthew Crivelli]

Would be happy to take a look for you! @Kailey Van Camp

[Mark Bynog]

Quote from @Kailey Van Camp:

Fellow investors, I need a referral for DSCR lender in FL and GA. Thanks!!

 Did you find any recommendations in Ga?

[Stacy Raskin]

More info on DSCR loans, in case helpful:

DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further.