Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Brittany Minocchi

Brittany Minocchi has started 9 posts and replied 924 times.

Post: Does anyone have experience using DSCR Loans as a cash out refinance option?

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452

Very popular strategy for BRRRRs. Investors will buy a property that needs work, rehab it, rent it, refinance into a DSCR loan and use the cash out toward another property. This loan type uses the potential income of the property to qualify you instead of employment and income documentation. The lender wants to see that you bring in enough rent to at least cover your principal, interest, taxes, insurance and association fees. Plan for somewhere around 70-75% LTV (depending on your credit and a few other factors), a bit higher of a rate compared to a conventional loan and a prepayment penalty. Some lenders want to see 90 days seasoning on the title, others 6 months, others a year.

Post: Homes for under $75000

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452

Hey @Courtnye Nicole!

It's definitely possible depending on what market(s) you're open to. I invest in and am local to Canton, OH. All of my properties were purchased for less than $50k (this was a few years ago) but they did need some work, although it was mostly cosmetic and nothing that would prevent someone from immediately occupying the property. Are you looking for cash flow or appreciation? These properties aren't heavy on appreciation, but cash flow is great and that's what we shoot for. 

I was in the same boat as you with being anxious about the debt and all the what-ifs. Make sure the numbers make sense. Will rents cover your mortgage? Are you planning on self-managing or using property management? Are you cash flowing enough to cover yourself in the event you have a vacancy? When the inevitable repair comes up, do you have enough in reserves to cover it? The debt doesn't seem so bad when you see that it's allowing you to get returns you'd never see just leaving that money sit in your savings account. Feel free to reach out if you ever want to chat :) 

Post: Best Way To Purchase Home

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452

If you're planning on living in it for at least part of the year, a second home loan would be a good option. You can rent out a second home, but you have to intend to occupy for at least part of the year. This is more commonly found with STRs. If you think there's a good chance you'll rent it out as a LTR, you could pay "cash" with the equity in the farm via a HELOC or cash out refinance.

Which route you should take depends on what rate you currently have. If it's lower than you'd get with a cash out refi, it's probably a better idea to do a HELOC. Draw enough to purchase the PA property, and do either delayed financing or a cash out refi on that property if it needs any sort of work. Loan type at that point would depend on occupancy - you could do a second home, investment, or something like a DSCR loan if you don't want your employment/income/DTI factored in. You've got a few options.

That was a LOT of info and your head might feel like it's going to explode.... so if you have any questions or need something explained, feel free to reach out! Happy to help. 

Post: How to apply for HELOC

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452
Quote from @Anthony Isgro:

@Brittany Minocchi

@Susan Chagalian

Thank you for reaching out.

here are my numbers: Property value according to tax assement 1,400,000 comps on MLS ~2,000,000. Loan balance ~290,000 Credit score 775. HELOC wanted $400K

the Problem, property is in Hawaii.

Any thoughts?


 Looking into this for you - I'll be in touch!

Post: House hacking to STR

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452
Quote from @Beyonce Davis:

The first home I bought was with my brother , I helped with the downpayment and he covers the mortgage payment as rent. We are both on the title and the loan but since he covers the payment I have had some lenders exclude this one house but there was one that refused to. 
I have been following a process where I buy a home and live in it for a year then convert to STR and I have acquired 3 homes this way. So technically I have 4 mortgages in my name. In the last 4 years, now I'm facing some roadblock acquiring more. How have anyone else handles this obstacle without high interest, high down pay

Your debt to income ratio will be a determining factor with traditional financing. In order to get past that, you're going to need a nonQM loan that doesn't factor in DTI, employment or income, like the DSCR loan you mentioned. Rates for DSCR loans aren't always that far off from a conventional investment loan, but they do typically have higher costs associated with them. These loans are a bigger risk for the investor, so the tradeoff is higher fees and/or rates. You just need to look at the deal as a whole and see if it makes sense for you and your goals. 

Post: Cash out refi

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452

Hi @Chibueze Nwadigo

Jay is correct in that the guidelines did recently change from 6 to 12 months on a conventional cash out refi. However, there are nonQM options that will allow shorter seasoning periods depending on the situation. Feel free to reach out to discuss. 

Post: How to apply for HELOC

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452
Quote from @Kofi Thompson:
Quote from @Brittany Minocchi:

Hi @Kofi Thompson

HELOCs on investment properties can be hard to come by. Is your property in your personal name or an LLC and what state is it located in? If you'd like to send me a message with more info, I'm happy to look into this for you.


 Hey I am in Mississippi and yes it's in my personal name. I actually lived there 15 years before buy a new home over a year ago. 


Okay, I think I have a HELOC option for you. Credit score over 700 would qualify you, We'd just have to make sure all the other numbers (property value, mortgage balance, LTV, etc) make sense.

Post: How to apply for HELOC

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452
Quote from @Anthony Isgro:

I'm having the same problem. I have 775 credit scope and over 1mm in equity and got denied on my investment property. I'm going to keep at it till I find a bank or credit union that will unleash that money so I can put it to work. Seriously frustrating though. Anyone have any Ideas?

Happy to dig into this for you if you’d like to send me more information. 

Post: How to apply for HELOC

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452

Hi @Kofi Thompson

HELOCs on investment properties can be hard to come by. Is your property in your personal name or an LLC and what state is it located in? If you'd like to send me a message with more info, I'm happy to look into this for you.

Post: Current SFH interest rates

Brittany Minocchi
Lender
Pro Member
Posted
  • Lender
  • Massillon, OH
  • Posts 958
  • Votes 452

Not sure if you're looking for conventional or nonQM. I'm quoting mid 7s or so on conventional SFH investments with purchase prices around $250k, 75% LTV and 780+ FICOs. High 7s to low 8s on DSCR.