Lenders in Montgomery Alabama

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Lenders in Montgomery Alabama

Renzo Figueroa
Member since 2024 · 8 posts · 6 votes

Hello!

I am a first time investor. I am looking to invest in SFH in the 60-100k range in Montgomery, Alabama. My goal is to buy turnkey properties for long-term rentals. I am looking for DSCR loans, but I have had a very hard time finding lenders in that range category. I would appreciate any recommendations.

Thanks!

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Nate HerndonPro Member
Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
2y
Quote from @Renzo Figueroa:

Hello!

I am a first time investor. I am looking to invest in SFH in the 60-100k range in Montgomery, Alabama. My goal is to buy turnkey properties for long-term rentals. I am looking for DSCR loans, but I have had a very hard time finding lenders in that range category. I would appreciate any recommendations.

Thanks!

Hey Renzo, I know that most lenders don't work with values under $100k. However, my favorite program I use for my clients requires a minimum property value of $75,000, with a minimum loan amount of $50,000. It helps that they are also #1 on interest rate out of the 20+ DSCR programs I use.

I close 3-5 DSCR loans in Alabama every month. Birmingham is popular, Montgomery is great as well. The lowest value exception I have received was for a $64,000 purchase, for which that 80% loan was $51,200.

I wouldn't recommend looking for loans too far below the $70k mark, as that is contingent on an exception land and up to underwriter discretion. But we've done it. Let's connect and I'm happy to figure out what will work for you. 

Here is an example loan summary of $75,000 purchase:

[email protected]417-605-2196
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  • Jason Taken
    Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    2y
    Quote from @Renzo Figueroa:

    Hello!

    I am a first time investor. I am looking to invest in SFH in the 60-100k range in Montgomery, Alabama. My goal is to buy turnkey properties for long-term rentals. I am looking for DSCR loans, but I have had a very hard time finding lenders in that range category. I would appreciate any recommendations.

    Thanks!


    If you purchase the property for 100 - we can help on the DSCR front. Our min loan amount is 50k on DSCR --- but appraisal needs to come in over 75k.

    1Reply
  • Renzo Figueroa
    OP
    Member since 2024 · 8 posts · 6 votes
    2y
    Quote from @Jason Taken:
    Quote from @Renzo Figueroa:

    Hello!

    I am a first time investor. I am looking to invest in SFH in the 60-100k range in Montgomery, Alabama. My goal is to buy turnkey properties for long-term rentals. I am looking for DSCR loans, but I have had a very hard time finding lenders in that range category. I would appreciate any recommendations.

    Thanks!


    If you purchase the property for 100 - we can help on the DSCR front. Our min loan amount is 50k on DSCR --- but appraisal needs to come in over 75k.


    Thanks for your response, Jason. What are the minimum DSCR and minimum down payment requirements?

    Also, I'm curious: If I purchase the SFH with all cash, get a tenant, and then apply for a DSCR loan, will the $50k minimum loan amount and $75k appraisal still apply?

    Thanks!

    0Reply
  • Greg ParkerBusiness Member
    Realtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 663 posts · 536 votes
    2y

    Yep, 100k seems to be the minimum for the lenders I work with.

    And, if you are buying turnkey in Montgomery, you will have zero equity.  And, that is fine if you can get good cash flow.  It will eventually build some equity.

    [email protected]
    MGM Property Pros LLC
    View Page
    1Reply
  • Anderson S.Business Member
    Lender · Brooklyn, NY · Member since 2024 · 209 posts · 50 votes
    2y

    Do you currently own property? Let's find time to connect.

    [email protected]917-830-7144
    Brooklyn Funding Group59 Reviews
    WebsiteView Page
    1Reply
  • Nate HerndonPro Member
    Lender · Springfield, MO · Member since 2023 · 277 posts · 195 votes
    2y
    Quote from @Renzo Figueroa:

    Hello!

    I am a first time investor. I am looking to invest in SFH in the 60-100k range in Montgomery, Alabama. My goal is to buy turnkey properties for long-term rentals. I am looking for DSCR loans, but I have had a very hard time finding lenders in that range category. I would appreciate any recommendations.

    Thanks!

    Hey Renzo, I know that most lenders don't work with values under $100k. However, my favorite program I use for my clients requires a minimum property value of $75,000, with a minimum loan amount of $50,000. It helps that they are also #1 on interest rate out of the 20+ DSCR programs I use.

    I close 3-5 DSCR loans in Alabama every month. Birmingham is popular, Montgomery is great as well. The lowest value exception I have received was for a $64,000 purchase, for which that 80% loan was $51,200.

    I wouldn't recommend looking for loans too far below the $70k mark, as that is contingent on an exception land and up to underwriter discretion. But we've done it. Let's connect and I'm happy to figure out what will work for you. 

    Here is an example loan summary of $75,000 purchase:

    [email protected]417-605-2196
    2Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Renzo Figueroa:
    Quote from @Jason Taken:
    Quote from @Renzo Figueroa:

    Hello!

    I am a first time investor. I am looking to invest in SFH in the 60-100k range in Montgomery, Alabama. My goal is to buy turnkey properties for long-term rentals. I am looking for DSCR loans, but I have had a very hard time finding lenders in that range category. I would appreciate any recommendations.

    Thanks!


    If you purchase the property for 100 - we can help on the DSCR front. Our min loan amount is 50k on DSCR --- but appraisal needs to come in over 75k.


    Thanks for your response, Jason. What are the minimum DSCR and minimum down payment requirements?

    Also, I'm curious: If I purchase the SFH with all cash, get a tenant, and then apply for a DSCR loan, will the $50k minimum loan amount and $75k appraisal still apply?

    Thanks!


    The minimum DSCR is 1.00 and the minimum DP for most lenders on this size of a deal is 20%. And Yes, that guideline will still apply on a refinance. If you do this, you may need to wait 6 months to use the new value or you can do a delayed purchase if the PP is $75k and the value is $75k or over.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Renzo,

    There are options out there as low as 50k in loan amount with DSCR. The minimum down payment is typically 20% down!

    310-848-9776
    0Reply
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