All Forum Posts by: Alex Roter

Hey @Lei Lu what type of issues are you running into regarding financing on the second STR?

Hey @Account Closed, based on today's market, here are the terms I've come across regarding Soft-Money Loans (better than hard money)

Seasoned Single Family Home Rentals (after 6 months from purchase date):

• Up to 75% Loan-to-Value (newly appraised or After-Repair-Value)
• 30-year fixed term
• No Debt-to-Income Ratio Analysis Required
• No Debt-Service-Coverage Ratio Analysis Required
• Rates starting in the high 4% range

Un-seasoned Single Family Home Rentals (prior to 6 months seasoning, 1-day seasoning okay):

• Up to 75% Loan-to-Cost (Purchase Price + Improvements Dollar-for-Dollar)
• 30-year fixed term
• No Debt-to-Income Ratio Analysis Required
• No Debt-Service-Coverage Ratio Analysis Required
• Rates starting in the high 4% range
  

Commercial or Multifamily Properties:

• Up to 75% Loan-to-Value
• 30-year fixed terms 
• No Debt-to-Income Ratio Analysis Required
• No Debt-Service-Coverage Ratio Analysis Required for loan amounts <$500K
• Rates starting in the high 5% range
  
  

I know of a lender who can accept this, as long as you transfer the funds into your personal bank account prior to closing 

I've come across lenders who do not care about Debt Coverage on Investor 1-4 unit properties

Hey @Blake M Pursel you can find lenders that would refinance you 1 day after acquisition, however, said lenders typically have property seasoning requirements of 6-12 months to offer a new loan based on the newly appraised value (After-Repair-Value). 

Hey @Reed Meyer, I understand your frustration-- I mean, the bigger picture makes sense! Since there are expenses associated with owning a property, the Lender needs to determine the net income (after expenses). Without the tax return, the Lender is basically left to "taking your word for it." 

Can you add a family member on the loan, who has sufficent income to meet the DTI ratio requirment?

Can you borrower a large sum of money from a family member or friend? 

Otherwise, you may have to wait until you file your 2021 tax return, and revisit your options thereafter.

There are Lenders who do not use DTI analysis whatsoever, however, these type of loans are only eligible for Non-owner occupied properties. Also, the down payment requirements are much larger (typically around 20-25% of the purchase price).

@Anthony Zotto Hey Anthony, you can get a commercial loan in your personal name. 

@Kendra Espinosa Hey Kendra, as a mortgage professional myself, firstI would recommend getting a pre-approval from a mortgage broker or banker. Once they review your income/debts and determine your maximum purchase amount, then reach out to a real estate agent and have them find a property within those limits.

Hey @Aaron Jones congrats on taking the first steps towards your first rental property. I am a rental property lender, so I can provide you with guidance on the finance aspect of the deal. What type of loans have you qualified for in the past? Conventional or Hard Money?

Hey @LaTonya Clark the cash-out refi was a smart strategy, especially with the rates in today's market. I've never heard of the $0 down investment purchase loan, typically we see 15-25% down payment requirements to obtain financing.