All Forum Posts by: Brittany Minocchi

Hi Sarah!

I'm a lender based in the Akron/Canton and invest here as well. I have a few investor-friendly real estate agent recommendations if you need them. Welcome, and happy to talk about whatever, whenever!

I know someone who covers both residential and commercial in that area - happy to share his info, just shoot me a message! 

Traditional financing? I can go down to a ~$50k loan amount depending on the whole file. NonQM is harder - I haven’t come across a lender that’ll go below $75k. Happy to help if you’d like to connect! 

The lower loan amounts have higher rates and fees (especially on a multifamily investment) and LOs don’t make much on anything under $100k, so some might not think it’s worth the work. 

Hi Jose! 

Happy to connect if you'd like to send me a message to discuss. 

Hi Subhosh!

I’m about 45 mins south of Cleveland, happy to connect. 

Unfortunately not with traditional financing. You’d have to look at seller financing or nonQM for anything less, but then you’ll run into higher rates/fees and prepayment penalties 

Yes it is! As Jason said, there are programs that don't consider income or employment. The downside to going that route vs. conventional is that they have higher rates and fees since they're a bigger risk for the lender. Most require 20%+ down and a 660+ credit score. DSCR loans are popular. As long as the property is bringing in enough to cover PITI (and you meet the FICO/down payment requirements) you're good. If you exceed a 1.0 DSCR, chances are you'll be able to get a bit better of a rate. These loans also have prepayment penalties whereas traditional loans do not.

If your DTI will allow and you otherwise qualify for a conventional loan, they usually offer better rates and terms compared to a nonQM/commercial type loan. You mentioned that you do intend to occupy it, so a second home loan might be more beneficial. They used to have much better pricing, but people took advantage (doing the opposite of what you're doing - not intending to occupy the property but acting like they are to get more favorable terms) and now they aren't so different from a conventional investment loan. If you decide to go the DSCR route (a popular option for STRs), make sure your lender knows it's going to be used as a short term rental. Not all will use STR data For the appraisal. There's a chance they'd look at market rents for comparable properties that are rented on a long term basis, which could cause trouble when it comes to meeting the ratio requirements. I recommend staying with conventional loans as long as you can qualify - it'll save you $$$.

If you haven’t already, make sure to familiarize yourself with the POS inspection process and factor that into your numbers (for any properties it may be applicable to). 

@Michael Dumler no problem! Investors in my area run into that issue all the time, so it’s something that jumps out at me.