All Forum Posts by: Alex Roter

Congrats @Andrew Vincent, good luck I'm sure you'll do great!

Hey @Darren Looker, I've come across DSCR loan programs that allow for up to 75% Loan-to-Value on a Cash-Out Refi. Typical rates in today's market are in the 6% range with absolutely zero DTI requirements. You may be able to find seasoning requirements as low as 3 months (from the date the deed was recorded).

Hey @Eric Rosendale I've seen loan programs for foreign investors with-or-without US credit, although you would need to have a U.S. bank account established. I've come across lenders who offer short-term (fix & flip) loans with something along the lines of 3-months guaranteed interest required -- contrary to the pre-payment penalty based on a % of the loan amount for a specific number of years.

Hey @Diana Rivera I've come across short-term (1-year Interest-Only) hard money loans with better options for pre-payment penalty than 1-year. For instance, a lender may have a guaranteed-interest requirement (typically 3 months) instead of charging a percentage based on the remaining loan balance at the time of payoff. To break it down even further, if you sell or refinance within, let's say, the second month, you'll be responsible for paying an additional 1-month of interest to make up the 3 months.

Hope I explained that well, feel free to message if you have any questions or concerns.

Hey @Joey Anderson, typically I see 30-year fixed-rate options, with rates in the 5-6% range. Typically, lenders are okay with using 100% of the rents to qualify as income. Since DSCR loans are for business-purpose (not personal use), lenders will make sure there's no indication of you living (or planning to live) at the property in subject. You'll most likely have to own your primary residence and prove that you live there.

Hope this helps.

Hey @Joel Rosa there are asset-based (DSCR) loan programs for first-time investors with no U.S. Credit. Although, the terms will less favorable than if you had real estate ownership experience and U.S. credit history. The asset-based loans take a very subject-property based approach to underwriting, so no tax returns or personal income statements will be required.

Hi @Cherie Pierce, based on Fannie Mae guidelines, when calculating DTI analysis, you can include the rental income on your primary residence, however, only to be used to offset the converted property's PITIA . You won't be able to use any excess rental income, or positive cashflow, as effective income.

Not sure about mixed-use primary residence purchase scenarios, where you are not operating the business yourself. I would check with a mortgage broker in your state.

Hope this helps!

@Erik Estrada

Hey @John Matthew Johnston, Asset-based/DSCR loan programs have absolutely zero DTI requirements. The underwriting process takes more of a subject property-based approach, so the lender doesn't need to review your personal income -- less paperwork to deal with. Also, they come with 30-year fixed rate options with rates starting in the 5% range

@Jorge Martinez I've worked with many DSCR lenders nationwide, and a 1-year title ownership seasoning to calculate LTV from the newly appraised value is not unheard of. In the lender's eyes, they find it hard to justify a property whose value increased significantly within a short period of time. Although, I'm sure local lenders can work around this because of their knowledge and confidence in the local area to be able to take higher risks in the deal.

@John Hugh I agree with Mike, there are plenty of reputable lenders who request only the appraisal to be paid upfront.