Question about DSCR loans

[Kathy Reyes]

I just found out about DSCR loans. I am a new investor and would like any advice on where to go to apply for one. I am looking to invest in properties in Illinois. I would appreciate any advice or opinions on this topic. Thank you.

[Stephanie P.]

Quote from @Nathan Grabau:

I would contact local banks/ credit unions in your area. Walk in to their main office and ask to talk to someone about real estate lending. It is likely you will be across the table from their VP of lending or a similar role. I would ask them what they are interested in lending on and the terms they have. I would expect 20-25% down, and a minimum DSCR of 1.25 most of the time.

 @Kathy Reyes

Welcome to Biggerpockets.  

I have to respectfully disagree with @Nathan Grabau

If you're a new investor and walk into a bank or a credit union and start asking to speak to someone about DSCR loans, they'll likely have you escorted out of the building. Just kidding. It wouldn't be that extreme, but it's likely they won't know what you're asking for because most banks and credit unions don't use DSCR products; even if you're speaking to their VP of lending not to mention the hassle and time suck of getting in your car and fighting traffic as you drive to the local credit union. Instead, do some research here on BP. Listen to podcasts and read books (they're in the education section of the toolbar above) and then reach out to some of the DSCR brokers here the site (there are a ton of us here). Send private messages and ask questions. I don't know anyone on here that would reject a new investor who has questions. Read previous posts that are pertinent to what you're looking for and get a good feeling for who's posting, what they're posting and I think this is imminently important, get a good feeling if they're right as validated by their peers. People disagree here all the time and the discourse fleshes out the people who know what they're doing and of course, the ones that really don't.