DSCR Loan recommendations

[Giancarlo Valverde Barriga]

Hello all, out-of-state investor looking to invest in Cleveland, OH. I am a new graduate and do not have two years of income for a traditional loan. I am looking to borrow ~$90k. I have enough for the downpayment + reserves, good credit, etc, but I might have to hunt for a new lender. I previously understood that I should apply for a product that was offered that best suited my needs. However, I believe I am now told that the minimum lending amount is much higher than initially explained. 

If I have to find a new one, does anyone have any suggested DSCR lenders?

Thank you!

[Brandon Beardt]

The lowest loan amount I've seen allowed by an institutional DSCR lenders is around $60K. If you're looking at deals that require a $90K loan amount, you shouldn't have too much of an issue. You mentioned you're a new graduate, do you own your own primary or any other investments? If not, shop around for other DSCR lenders & make sure you'll be able to qualify as a first time homeowner with the programs offered. Some don't check this requirement while others will. Best of luck.

[Erik Estrada]

Quote from @Giancarlo Valverde Barriga:

Hello all, out-of-state investor looking to invest in Cleveland, OH. I am a new graduate and do not have two years of income for a traditional loan. I am looking to borrow ~$90k. I have enough for the downpayment + reserves, good credit, etc, but I might have to hunt for a new lender. I previously understood that I should apply for a product that was offered that best suited my needs. However, I believe I am now told that the minimum lending amount is much higher than initially explained. 

If I have to find a new one, does anyone have any suggested DSCR lenders?

Thank you!

 Hey Giancarlo, 

The minimum loan amount is $75,000 for Most DSCR lenders. The max LTV for an inexperienced investor is 75%.

If you do not own your primary, you will need to show at least 12 months of rental payments to qualify. 

[Candace Harris]

Check out:

https://americacapitalsolution...

[David Tran]

Quote from @Brandon Beardt:

The lowest loan amount I've seen allowed by an institutional DSCR lenders is around $60K. If you're looking at deals that require a $90K loan amount, you shouldn't have too much of an issue. You mentioned you're a new graduate, do you own your own primary or any other investments? If not, shop around for other DSCR lenders & make sure you'll be able to qualify as a first time homeowner with the programs offered. Some don't check this requirement while others will. Best of luck.

Can I please get the company that can offer 60k DSCR? Thank you!

[Bryan Johnson]

I have a DSCR product but you have to already have 12 months rental history ltr or str. Not sure if they will allow you to proceed as a first time homebuyer.

[Cliff Benner]

I used @Nick Belsky for a DSCR Loan I got for my Rental in Dayton that was under $100k.

He did amazing and helped me with so many items by reaching out to my other team members and getting the information he needed to close the loan quickly. 

[Nick Belsky]

@Giancarlo Valverde Barriga

First off, if you are coming out of college and are now working in your field of study, your time at school counts towards your employment history.  You do not need to show 2 years of employment history to qualify for conventional financing.  I help new grads all the time and get them approved without much hassle.  You will need to show transcripts to prove time in school and show the last month of paystubs along with an offer letter for your employment.  

There is only one lender I know of whom is lending down to $50k on DSCR, but they are a wholesale lender. You cannot go to them directly. It must be through a mortgage broker.

Either conventional or DSCR, don't look for prime rates with a loan amount so low. The lenders will penalize you for such a low loan amount.

Cheers!

[Giancarlo Valverde Barriga]

Quote from @Nick Belsky:

@Giancarlo Valverde Barriga

First off, if you are coming out of college and are now working in your field of study, your time at school counts towards your employment history.  You do not need to show 2 years of employment history to qualify for conventional financing.  I help new grads all the time and get them approved without much hassle.  You will need to show transcripts to prove time in school and show the last month of paystubs along with an offer letter for your employment.  

There is only one lender I know of whom is lending down to $50k on DSCR, but they are a wholesale lender. You cannot go to them directly. It must be through a mortgage broker.

Either conventional or DSCR, don't look for prime rates with a loan amount so low. The lenders will penalize you for such a low loan amount.

Cheers!

Great point. Unfortunately, my job, even though major-related, is not on salary. That seemed to close that door for me with most lenders, which redirected me to this path. Gotta love all the No's in problem-solving. It makes the Yes 10x as sweet.

[Dena Zeman]

Quote from @Nick Belsky:

@Giancarlo Valverde Barriga

First off, if you are coming out of college and are now working in your field of study, your time at school counts towards your employment history.  You do not need to show 2 years of employment history to qualify for conventional financing.  I help new grads all the time and get them approved without much hassle.  You will need to show transcripts to prove time in school and show the last month of paystubs along with an offer letter for your employment.  

There is only one lender I know of whom is lending down to $50k on DSCR, but they are a wholesale lender. You cannot go to them directly. It must be through a mortgage broker.

Either conventional or DSCR, don't look for prime rates with a loan amount so low. The lenders will penalize you for such a low loan amount.

Cheers!

Hi Nick, may i have your DSCR contact for the lender that goes down to $50k? 

Thank you

[Nick Belsky]

Quote from @Dena Zeman:

Quote from @Nick Belsky:

@Giancarlo Valverde Barriga

First off, if you are coming out of college and are now working in your field of study, your time at school counts towards your employment history.  You do not need to show 2 years of employment history to qualify for conventional financing.  I help new grads all the time and get them approved without much hassle.  You will need to show transcripts to prove time in school and show the last month of paystubs along with an offer letter for your employment.  

There is only one lender I know of whom is lending down to $50k on DSCR, but they are a wholesale lender. You cannot go to them directly. It must be through a mortgage broker.

Either conventional or DSCR, don't look for prime rates with a loan amount so low. The lenders will penalize you for such a low loan amount.

Cheers!

Hi Nick, may i have your DSCR contact for the lender that goes down to $50k? 

Thank you

They are a wholesale lender and you can't go to them direct as they have no retail division.  United Wholesale Mortgage, UWM.