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!

[Camile Case]

They are 100% liable along with you for the loan repayment. You can refinance the loan yourself once the construction loan is complete. You just have to find someone willing to help builder or investor. You can bring another experienced investor on and just pay them a fee, etc. to get creative and get it done - all you need is 1 completed under your belt. Partnership & Collaboration is key when scaling.