All Forum Posts by: Tarik Turner

From a lenders perspective the issues that you might face on this one are the following
The rehab cost is more than double the purchase price/current value
120k sounds like it is a full gut rehab (or heavy rehab job, ) Some lenders want to see experience as an investor in properties in need of rehab when the rehab budget is over 100k
Some lenders have an initial disbursement minimum - which at a 50k as is value might eliminate some lenders

Since you purchased the property using cash you may be able to pull off a delayed purchase depending on how long you held the property.
I will send you a DM

Depending on the details of your deal you should look into DSCR or other stated income loan products if you are concerned about DTI issues
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Quote from @George Duchatelier:

i have a follow up question regarding DSCR loans. Can you get a DSCR loan that includes rehab costs?

There are lenders who offer DSCR loans and short-term rehab loans, but they are typically two separate loan products. If the property needs rehab the lender would lend a portion of the purchase price (i.e. 80%) and typically 100% of the rehab costs. Once the property is completely rehabbed then you can refi into a 30 year DSCR based loan

If you want to base your refi off of the appraised value, many lenders require a 6 month seasoning period if purchasing with cash. Every lender has different criteria however, so call around.

DM Sent

What type of property and what LTV are you seeking?

Not all DSCR loans are at 8.1%

Try a different lender, look into a dscr options as well

Unless you found a lender who you are comfortable with in regards to process, response time and terms, keep shopping. Business relationships are just that... Relationships. Find a lender who's guidelines and lending criteria meet your needs as an investor

Front loaded interest is pretty standard -ask the lender/servicer to send you a copy of the amortization schedule