All Forum Posts by: Brittany Minocchi

Hey Jimmy - 

Feel free to reach out. I have 30-year fixed, ARM, 30-year interest only and 40-year interest only.

Most lenders will use the lower of actual rents vs market rents regardless of section 8/non section 8. Some will allow something like 120% of market rents if they come in lower than the leases. 

Maybe with a low (70% or less) LTV or an ARM and stellar credit...also depends on what type of loan you're looking for (nonQM or conventional Fannie/Freddie)

Much less paperwork involved with a DSCR compared to a traditional mortgage if you're familiar with that process! That's the biggest difference as far as the process goes. It may be similar to other commercial lending options, but it really depends on the type of property and the procedure of the specific lender you're working with.

Both! It depends on which one fits you and your scenario. 

If you want to close in an LLC, have a high DTI, low income on paper (meaning your net income on tax returns is low because of deductions), or an unstable employment history, those are great reasons to go with a DSCR.

If none of those apply, look into conventional first. Terms will be better (rates CAN be better but they aren't always) but there's more paperwork involved. 

Both will look at FICO scores.

I'm in Ohio and can assist with either type of loan - you're welcome to reach out with questions and we can compare the two options. Happy to help! 

15% on a single family home and 25% on 2-4 units if you're using conventional (Fannie/Freddie) financing. If you're looking at a debt service loan, 15% is the minimum for a purchase but it's much more common (and rates are better) at 20-25%. 

A debt service loan would be a good option if your DTI is high, you want to close in an LLC, you're self-employed or have low income on paper, or you don't have a stable 2-year work history. All of those are factors with conventional financing, but debt service loans do not.

Any of those could be doable. I'm local to Canton and there are properties listed under $100k regularly, including multifamily. If you get a duplex for $100k and rent reach side for at least $700, there's a good chance one side will cover the expenses and the other will be cash flow....that's even if you decide to finance with the current interest rates. 

If you're planning to buy in the US, there are programs for those that aren't US citizens. If you have scorable US credit, you'll get better terms. If you don't have a US-based bank account, I would get one as that's a requirement by most lenders. Finally, be prepared to need a 30-35% down payment. Feel free to reach out if you have any other questions! 

Many lenders have a 6 month seasoning requirement to use the new appraised value, but some allow 0-3 months instead (they may require that rehab was completed, which wouldn't be an issue in this instance). This loan type is typically priced with a prepayment penalty which could be triggered with a refi, sale or any additional principal payments during that time. 5 years will get you the lowest rate usually, and buying it out (having no penalty) will be the highest. Again, usually. 

75% LTV is the max on a cash out with most lenders, some will go up to 80%. You'll see an increase in rate for that extra 5% though. If your FICO is on the lower end, the property is a STR/you're using potential STR rents to qualify, etc....LTV may be lower than 75-80%. Just a few things to consider :)

Feel free to reach out, I'm happy to help answer any other questions you have and walk you through the process!

Hey Alyssa! 

I'm in Ohio and would be happy to chat if you'd like to reach out.