All Forum Posts by: Andrew Zamboroski

I have a 805 credit score, low DTI and attempting to secure the lowest cash out refi to pay off a debt ($50k). My broker is saying the broker fee is a standard $3000 amount bc the amount requested is under 100k and advised the minimum I am able to to pull out is $75k. The property is paid off, fully remodeled and has a tenant in place whose rent exceeds the monthly loan amount. I am attempting to refi under a DSCR loan proposed interest is 8.375%. Estimated closing cost is $7776.80 on a $75k washout refi. Does any of this sound valid?

Everyone reserves the right to set a rate for their time. But, compared to the loan size, I agree that it does sound steep. Happy to give another look on DSCR if you want to connect! As Jay mentioned, a conventional loan could also be an option for you. Is your condo warrantable?

0 Votes

Tampa, Florida

Quote from @Wayne Doucet:

Wanting to know if they have any DSCR lenders that will loan on a condo. I'm not purchasing both units just one of the two?

As others have said, almost all DSCR loans offer loans for warrantable condos. However, there is often flexibility for non warrantable ones too (depending on the reason). Certain lenders may reduce ltv for the added risk of it being non warrantable.

2 Votes

Baton Rouge, Louisiana

Quote from @Jeremy Porter:

I have a condo I recently acquired that I own outright. I am wanting to pull cash out of it. My issue I am running into is I recently switched into real estate full time so I do not have a w2. My credit is good/excellent. I am wanting to just pull 100k out and it should appraise for 140-155k. Part of the issue I am experience is a DSCR company I spoke to will only give what I acquired the property for plus the rehab cast. I acquired the property in a unique via trade of a different property I owned.

Does anyone have a solution?

You need a DSCR lender with a lower seasoning period. For example, we can often waive that period with rehab being done or at 90-days seasoning (ownership). If you want us to take a look, let’s connect!

0 Votes

Little Rock, Arkansas

Quote from @Bailey Fait:

Looking for options to assist with a home purchase. Approved for the max allowable conventional loan, but looking for ways to fund the DP. The scenario is for a home listed at 1,095,000 with the ARV being at or around 1.4-1.5. Given the PP is 75-80% of the ARV, are there lending options to fund the full purchase? Would that only be a HML? Or would the better of the options be to secure private money at $50k for 3-6 months to fund the DP?

I was close, but not close enough to fund the down payment. The reno to get to the ARV was simple, but I had budgeted $70k conservatively. I would be performing the work myself and essentially doing a BRRR on the home. Plan for funding the reno was through my W2, cash I didn't use on the down payment and a business CC with 1 year zero interest.

Thanks for reading! First time trying to purchase a home without funding myself. (401k loan N/A, HELOC on investment prop N/A)

It sounds like a fix and flip loan may work here based on your reference to an ARV. Less downpayment usually and rehab covered through draws. It could be a good way to get it done with less money down.

0 Votes

San Diego, California

Quote from @Tara Miles:

We have 5 Duplexes that we're looking to cash out refi. Have some quotes going the DSCR route however fees and rates seem on the higher end, we have 790 credit score, good W2 jobs so documentation is not a problem and we don't have an issue putting them in our personal names, but have had the MFRs for less than a year and operate out of MD. Is there any conventional residential loan options anyone is aware of that would allow cash out refi with less than 12 mths seasoning? Appreciate any information!

How long have you owned them? Conventional loans will follow the same guidelines, here is a good excerpt:

https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-r...

DSCR loans have flexible seasoning, which could allow you to put the money to use quicker, outweighing some negatives. If you want a second look, our team is happy to help.

0 Votes

Milwaukee, Wisconsin

Quote from @Mica Moore:

I have a single family house in Corpus Christi, TX that is my rental property. The only loan on it is a $40K HELOC from BoA. It has a high adjustable rate of 10.5% & climbing.

I live in San Antonio, but this rental is in CC. I want to do a cash- out refinance of $60K ( $40k to pay off HELOC, $10K for new roof, & $10K for my personal purposes). Obviously a fixed rate mortgage would have a lower APR - & that's my main reason to re-fi.

I have good credit & income - & I always qualify. The issue is as I was calling around - I haven't found a lot of banks that will lend on a rental property ( at least in CC). Another issue is that if I could find a bank that lends on rentals - they often have minimum loan amounts ($80K for example). Which, I don't want or need that much. ( yes I know the house will qualify because it would be less than 50% LTV- I just don't want higher payments on money I didn't want to borrow).

The other thing is how much higher is the fixed rate, because it's a rental? And how much do closing cost run? Because I paid 0 closing costs when I got the HELOC 2 years ago. So if the rate is high & the closing are high & the loan minimum causes me to over- borrow -- then the payments would be higher & it would not make sense at that point to cash- out refi at all.

Any lender recommendations who have good, rates, low closing- costs& a minimum loan amount of $60K or less?

We can do DSCR loans down to 50k in most instances! While closing costs will not be 0, the interest rate should be lower and fixed!

0 Votes

Quote from @Jose Sanchez:

I am looking to do a DSCR loan on a great deal I found as this seems like the only funding option. It is my first time using this product and having a hard time finding a broker that has lots of options with DSCRs and would be willing to work with me. Any help on where to go to find a broker for this product?

Jose,

What type of situation are you looking to fund? Everyone typically has a niche of lending that makes their DSCR product slightly better than another. Happy to connect to see how we
can meet your needs!

0 Votes

Long Beach, California

Quote from @Garrett Vaeth:

Just curious if anyone has successfully closed on 2 or more properties at once that are not owned by the same seller using a single blanket loan/portfolio loan? Currently looking at 2-3 $50-60k sfr properties all being sold by different sellers.

Different sellers can be a bit more arduous to coordinate with. Most of the time it’s much easier to close individually and then refinance into a portfolio loan if that is the goal. A recent example that comes to mind is for a client of mine; 10 SFH’s we looked at a portfolio loan for. We’re three weeks in and 6/10 houses are ready to go and the others have issues that would have delayed the package.

2 Votes

Detroit, Michigan

Quote from @Anietra Knox:

I’m looking to get private money lending to purchase a property and I do have ones who may help but nothing is etched in stone yet. Should I secure a PML first before I try to get a property or should I go ahead and find a property and get it under contract then see if my PML prospects will lend?

If you’re looking for a true PML, you may want to work those relationships first so that you can move quickly once the right property comes along. Just my two cents, not to say you cannot succeed the other way around too!

1 Vote

Kansas City, Kansas

Quote from @Chase Preston:

Hi all.

Making my first step into the real estate world. Started an LLC with a best friend and putting a cash offer in on a bank owned property. Planning a flip of the property with 50k cash buyout + 40k estimate of renovations.

We've considered paying cash for property, obtaining loan for 90k-100k and paying ourselves back first before starting renovations. We have the capital to pay for entire house + renovations with cash as well. We've considered home equity loans, HELOC, even credit card with high limit and 0% interest for many months.

Any direction you recommend? We've spoke with multiple banks at this point to get a few options. Main goal is minimizing risk with it being our first property but was able to obtain the house for 40+% less than listing price due to our cash offer and able to close ASAP.

Thanks

You may want to consider a hard money loan. The loans underwriting and due diligence (with the right lender of course) could prove helpful on your first deal.

Cheers to getting started and future success!

0 Votes

All Forum Posts by: Andrew Zamboroski

Andrew Zamboroski has started 0 posts and replied 276 times.

Post: What stands out to you on this initial cost worksheet?

Post: Wanting info on DSCR loan for a condo?

Post: How to get cash out of a property you bought 3 months ago for cash.

Post: Down Payment Lending or 75% LTV full purchase

Post: Conventional Cash out Refi for MFRs??

Post: Cash-out Refinance on rental property ( small mortgage)

Post: Finding the best DSCR Loans

Post: Blanket loan or portfolio loan

Post: Which should I do first?

Post: First Investment Property - Buy Property w/ Cash. Loan or mortgage after the fact?