All Forum Posts by: Brittany Minocchi

Like the others mentioned, not all lenders will look at income from STR and the ones that do typically require at least a 12 month history and/or allow for a lower max LTV. It's more likely that market rents as if it were a LTR will be considered. To answer your question though, you can definitely use DSCR to cash out refi without income/employment/DTI being factors.

There are DSCR lenders that still require 6 months seasoning and some that will allow shorter periods, but you're typically limited to a % of pp in that instance instead of appraised value/ARV. If you aren't looking to pull any more than what you have in it, that might work for you. If you're doing rehab on a property and want to use the new value, your options will be more limited. There are lenders out there that will use appraised value with no seasoning, but rate and fees tend to be a bit higher.

Lots of DSCR lenders available depending on the property and what the borrower is trying to accomplish. Happy to discuss if you'd like to reach out!

Haven't used them, but so far I only know of one lender that goes down to $50k in some instances. Most are $75k-$100k+

Hi Elliot, many lenders do DSCR loans in your area. Happy to discuss further.

I believe as a Pro member you can post things like that in the classifieds section of BP. 

Quote from @Alexia Healy:

I’m a soon to be first time homebuyer in the next year or two but I’m also interested in investing in real estate. Would it be smarter to buy an investment property or a primary residence first? or would buying a duplex be the best option to get both? 

House hacking is a great way to get started since you can then qualify for a lower down payment - 3.5% down with FHA. Otherwise an investment property will require a minimum of 15% down conventionally, more for a multi-family. Are you willing to deal with and live right next door to tenants for at least a year? If that’s not an issue, that would be my suggestion. House hack for at least a year, then you can decide whether to stay there, buy a separate investment property or move out and rent the unit you were occupying. Keep in mind that if you have an FHA loan on that first property, you’ll likely need to refinance into conventional on that property or go conventional on your second property (if you choose to move and buy a new primary) as you can typically only have one FHA loan at a time. 

Quote from @Jason Bobby:

Quote from @Andrew Postell:

@Jennifer Roberts thanks for posting. Lots of opinions here and some good ones at that. The main thing I want to point out here first is that you should NOT be "maxing out your DTI" with a conventional loan. At least, you shouldn't be working with a lender that sees it that way. Each rental property we purchase we cash flow, right? I mean, that's the point....so hopefully that's what you are doing. So if I cash flow with each property I should look BETTER with the more properties I own. Make sure your lender is counting that rental income to help you qualify. If they aren't, then go to a different lender. None of this "it needs to be on your tax returns" or "seasoned" or anything like that. I need rental income to help me qualify right now. Every time. But even if you do look amazing after each property you own - the conventional side will limit you to 10 loans (there are some exceptions here but for the sake of time let's run with this). So once you hit 10 THEN we do the DSCR loan.

I hope this makes sense but feel free to post more if you like.  Thanks!

 How is the lender able to qualify the income? Analyzing your bank statements for cashflow? Or showing leases? Or both? 

Depending on the situation — tax returns and/or leases 

Hi Jay —

There are a couple of lenders out there that will do 85% LTV. Keep in mind the higher the LTV, the higher the FICO requirements and the higher the rate in most cases. Feel free to shoot me a message if you‘d like to discuss further.

Hi Sanat, I need some additional info but may be able to help. Feel free to reach out to discuss.