DSCR Lender Needed

[Anthony Rega]

I have borrower that had a fix and flip loan. The project went over budget and flipper is behind 5 months payment and file lis pendes. He finally got CO, but wants to keep property as Long Term Rental. Borrower added a minority partner to catch up payments and had the lis pendes removed. Any lender would refinance property into Long Term DSCR loan? I know conventional need to wait 12 months? thanks

[Erik Estrada]

Quote from @Anthony Rega:

I have borrower that had a fix and flip loan. The project went over budget and flipper is behind 5 months payment and file lis pendes. He finally got CO, but wants to keep property as Long Term Rental. Borrower added a minority partner to catch up payments and had the lis pendes removed. Any lender would refinance property into Long Term DSCR loan? I know conventional need to wait 12 months? thanks

This MIGHT be possible with exceptions. But there needs to be compensating factors. How much reserves does your borrower have? What is his experience level? and what is his current FICO? How many mortgage lates are shown on his credit report? 

Strong LOE, and a very lenient lender might be able to do it. The rate and LTV won't be pretty though..