Any recommendations for a DSCR lender?

[Faiz Kanash]

Hello!
Sorry if this is the wrong subforum to ask this...

Anyone have any DSCR lenders they could recommend? I'm not sure if this is possible, but do DSCR lenders loan up to 90% LTV or is every lender around the 70%-80% mark? I'm primarily a fix n flipper type of investor and come across of a lot of great multi family deals in my area. Only issue is that I don't wanna go deep into my pockets, like a 20% down payment jusstt yet. Most multifamily properties go for around the 700k mark around me, so dishing out a $140k down payment kinda slows down my flipping business. If 90% is unrealistic, then i'd still like a recommendation of a DSCR lender, in the case I come across a multifamily building I really like that i'm willing to go crazy on haha. Also, a lender that is able to do 5+ units as most multi family buildings I come across are usually 6 units.

Thanks!

[Robin Simon]

Quote from @Faiz Kanash:

Hello!
Sorry if this is the wrong subforum to ask this...

Anyone have any DSCR lenders they could recommend? I'm not sure if this is possible, but do DSCR lenders loan up to 90% LTV or is every lender around the 70%-80% mark? I'm primarily a fix n flipper type of investor and come across of a lot of great multi family deals in my area. Only issue is that I don't wanna go deep into my pockets, like a 20% down payment jusstt yet. Most multifamily properties go for around the 700k mark around me, so dishing out a $140k down payment kinda slows down my flipping business. If 90% is unrealistic, then i'd still like a recommendation of a DSCR lender, in the case I come across a multifamily building I really like that i'm willing to go crazy on haha. Also, a lender that is able to do 5+ units as most multi family buildings I come across are usually 6 units.

Thanks!

Yes - DSCR Lenders are typically going to be maximum LTV of 80% and Cash-Out Refinances maximum DSCR of 75%. A tiny few are coming back to 85% for acquisitions, but it is mostly a mirage because no properties cash flow and qualify at 85% at today's rates and values.

Regarding Multifamily, generally "Multifamily" is considered around 5-10 Units for Multifamily DSCR Loans - these are typically going to be minimum 25% down however. I'd recommend this article published on BP on all about Multifamily DSCR Loans which are a pretty good option and might be a great fit for you if you are seeing a lot of Chicago area properties in the six range (think this is a very underrated niche!)

https://www.biggerpockets.com/blog/multifamily-dscr-loans