DSCR "Rural" lending

[Tanner Johnson]

So I have been having a lot of trouble getting a cash out loan on one of my properties I own outright, and I thought DSCR lending was going to be my saving grace. Well turns out pretty much my entire investing area is considered "rural" even though this specific property is right in the middle of a 30,000 population town and most DSCR lenders will not loan on it because of this. Has anyone ever found a way around this as I really need this to happen if I am going to scale. Conventional lending is not really an option as I am a college student and dont have much W-2 income at this time.

[Stephanie P.]

Quote from @Tanner Johnson:

So I have been having a lot of trouble getting a cash out loan on one of my properties I own outright, and I thought DSCR lending was going to be my saving grace. Well turns out pretty much my entire investing area is considered "rural" even though this specific property is right in the middle of a 30,000 population town and most DSCR lenders will not loan on it because of this. Has anyone ever found a way around this as I really need this to happen if I am going to scale. Conventional lending is not really an option as I am a college student and dont have much W-2 income at this time.

A town with a population density of 30K is not rural whether it's a DSCR loan or not. You may have a unique property.

Many DSCR lenders use idcide.com for their rural designations. If a property is in a town of 25K people or more, it's not rural. If it's in a town of less than 25K people, but it's within 25 miles of a town of 100K people, then it's not rural. If it's less than 25K people and it's more than 100K people, then it's rural.

Rural doesn't necessarily preclude a property for many lenders, but it will reduce the ltv (typically to 65%).