DSCR loans for newbie investor w/downpayment but maxed out DTI

[Jon Dawes]

Hello! I have (had?!) a plan to refinance our current mortgage as well as get a HELOC. Apparently our DTI is too high for the HELOC so we can do a cash out refi but that is less desirable because it means we cannot then get the loan for the rental property despite having 25% down. The HELOC was primarily to be for investing in real estate. Next year our DTI might look better. Our credit scores are 700 and 800ish, respectively.

I was wondering about securing a DSCR loan for the investment property. We are/were hoping to put a $60-70k down payment on a higher-end 'A' new build property with Rent to Retirement as I really like their business model/community, rather than a smaller down payment on a refurbished property in a 'C' area.

Are there 'preferred' DSCR lenders folks here in the BP community have utilized?

Hopefully there is some sense in this post!

[Erik Estrada]

Hey Jon, 

Depending on the DSCR, property type, and your experience, you may be able to put as low as 15% down on a DSCR loan.