Looking for lenders in the Maui

River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
2y
Hi Mariya - Is this your first STR?
Happy to connect and point you in the right direction.
[email protected]
1 Reply
Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
2y
Quote from @Mariya Anabo:

Does anyone have any recommendations on good savvy lenders in the area that can help with a possible STR in Kihei?

There are lots of reliable STR lenders on BiggerPockets. Do you have any short-term mental experience?
[email protected]860-538-3672
ProAlpha Capital56 Reviews
Website View Page
0 Reply
Nate HerndonPro Member
Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
2y
Hi @Mariya Anabo, what a beautiful area to be buying!

We will be wrapping up a STR purchase for a client tomorrow in Kailua-Kona. Would be happy to go over the options available to you.
The program that we utilize does not require prior STR experience, but instead will use 80% of AirDNA's projections for your market rent in underwriting.
[email protected]417-605-2196
0 Reply
Loren Clive
Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
2y
I have recommendations. Pm me
0 Reply
Logan Singleton
Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
2y
@Mariya Anabo , I'm Happy to assist! If this is your first STR, we would use 80% of AirDNA's stated income to qualify for debt service.
0 Reply
David Pearl
Lender · Member since 2024 · 121 posts · 14 votes
2y
Quote from @Mariya Anabo:

Does anyone have any recommendations on good savvy lenders in the area that can help with a possible STR in Kihei?

@Mariya Anabo - Sounds like an exciting opportunity! We can help!
0 Reply
Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 501 votes
2y
Our company can assist with STRs, non warrantable condos, general investment properties in Maui and all of Hawaii.
A lot of investor clients use DSCR loans as they won't use your income to underwrite the loan and there are more investor friendly loans compared to conventional.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further.
[email protected]818-770-0340
Bright Skyline518 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.

No results found