Any Ohio lenders offering decent DSCR rates on low valued properties?

Akron, Ohio
Creative Real Estate Financing
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Any Ohio lenders offering decent DSCR rates on low valued properties?

William Lemmon
Investor · Los Angeles, CA · Member since 2020 · 8 posts · 6 votes

Sounds sort of silly, but, we're constantly looking at properties in the Akron, OH area, and many of the properties that will yield the highest rents are in the range of $80K to $120K... I have no problem getting document loans in the 7.125 range for these properties, but, can't seem to find any DSCR lenders for properties like this. Are there any out there? —I know it's probably not an ideal size to lend on, but, without question can say we typically get them in volume... 10 to 15 year.

Anyway, any takers?

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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
3y

I'll third what Kristen and Jack said - $75k is the lowest any of my lenders will go on a DSCR. I'm always on the lookout for lenders that go lower, but haven't come across any yet. I'm local to the area and have had quite a few people in the same situation as you.

[email protected]330-354-6590
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  • Kristen L GarnerBusiness Member
    Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
    3y

    Hi William, DSCR loan minimums can be a problem for areas like Akron. I do have some options for DSCR with $75,000 loan minimums.

    [email protected]213-880-0434
    1Reply
  • Jack Tulloch
    Lender · Austin, TX · Member since 2022 · 474 posts · 586 votes
    3y

    Hey William,

    As @Kristen L Garner mentioned, 75k loan amount is typically the lowest that DSCR lenders will allow. Loans less than 75k would likely need true private lending from an individual or a credit union.

    1Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    3y

    I'll third what Kristen and Jack said - $75k is the lowest any of my lenders will go on a DSCR. I'm always on the lookout for lenders that go lower, but haven't come across any yet. I'm local to the area and have had quite a few people in the same situation as you.

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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    2Reply
  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    3y
    Quote from @William Lemmon:

    Sounds sort of silly, but, we're constantly looking at properties in the Akron, OH area, and many of the properties that will yield the highest rents are in the range of $80K to $120K... I have no problem getting document loans in the 7.125 range for these properties, but, can't seem to find any DSCR lenders for properties like this. Are there any out there? —I know it's probably not an ideal size to lend on, but, without question can say we typically get them in volume... 10 to 15 year.

    Anyway, any takers?


     You'll have to buy a few and tie them together in a portfolio loan where the minimum property value is 50-60K.

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @William Lemmon:

    Sounds sort of silly, but, we're constantly looking at properties in the Akron, OH area, and many of the properties that will yield the highest rents are in the range of $80K to $120K... I have no problem getting document loans in the 7.125 range for these properties, but, can't seem to find any DSCR lenders for properties like this. Are there any out there? —I know it's probably not an ideal size to lend on, but, without question can say we typically get them in volume... 10 to 15 year.

    Anyway, any takers?


    can send you some lender referrals in Ohio. I have a list of like 500 so at least one will probably do this
    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @William Lemmon We'd be in that same general rate range (low to mid 7s) for a 30 year fixed completely based on DSCR as long the property is priced at/worth at least $100,000. 75% LTV max. Like you, I'm a Los Angeles based investor with rentals in the midwest in that range so I use these same products for my own portfolio.

    [email protected]818-606-8823
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  • Dawson Rosenberg
    Investor · Member since 2023 · 37 posts · 1 vote
    3y

    hey man! yes! I would love to share some advice with you if you are still interested. message me !

    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    I can send over some lender referrals that my clients and I have worked with in the past. 

    [email protected]614-802-5698
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  • Michael MagnoBusiness Member
    Real Estate Agent · Wadsworth, OH · Member since 2017 · 234 posts · 168 votes
    3y

    I am an agent and investor in Akron market. As many above have said, you won't find any true DSCR options under $75k LOAN amount. That is the minimum threshold I have encountered here.

    0Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    3y

    Not quite true, a $65k loan size is currently available for DSCR loans.

    0Reply
  • Constancia R.
    IN · Member since 2017 · 96 posts · 63 votes
    3y
    Quote from @Remington Lyman:
    Quote from @William Lemmon:
    can send you some lender referrals in Ohio. I have a list of like 500 so at least one will probably do this
    Would you mind sending me the lender referrals as well? Thank you!
    0Reply
  • Constancia R.
    IN · Member since 2017 · 96 posts · 63 votes
    3y
    Quote from @Alfath Ahmed:

    I can send over some lender referrals that my clients and I have worked with in the past.

    Would you mind sending me the lender referrals as well? Thank you!
    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Constancia R.:
    Quote from @Remington Lyman:
    Quote from @William Lemmon:
    can send you some lender referrals in Ohio. I have a list of like 500 so at least one will probably do this
    Would you mind sending me the lender referrals as well? Thank you!

     Will do!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
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