STR construction loan

[Sean Bramble]

Hey everyone,

Was talking to my agent today and she suggested I consider building vs buying an STR since the market i'm searching in is super tight right now in terms of supply. I was previously planning to purchase an existing home with a DSCR-based loan since I left my job recently and can't meet the DTI requirement many lenders require. But if I build instead I'll need some sort of construction loan that I can qualify for given my situation.

I have great credit and enough cash to cover ~65% of total costs (land + materials + labor), but would rather use some sort of loan so I don't have to lock up so much of my capital in what will likely be a lengthy build process.

Have any of you ever built homes in a similar situation as me? Does a construction loan that considers future DSCR and the borrowers reserves instead of DTI exist for a first-time builder?

Thanks everyone!