All Forum Posts by: Carrie Matuga

@Brandon Sisco Most DSCR options cap out at 80%, I do have an option for up to 85% LTV, but there are some caveats - 1) DSCR must be abover 1.2 2) credit min 740 3) interest rates are typically higher (0.75-1.25% higher). If you want to talk, send me a DM

Hi Matt, I'd suggest looking at local and being open to conversations with lenders that can lend nationwide. It's smart to have more than a few conversations because not everyone offers the same products, leverage or terms. Happy to be a resource. DM me

I think you are going to find your financing options extremely limited by the purchase price and the fact that the renovations are more than the purchase price. If you have the downpayment, I'd recommend amending your buy box to be a MINIMUM of 75K purchase price with ARV being greater than 130% of your cost basis (purchase + renovation). This way, too if you are keeping it when you go to refinance, your loan is a minimum of 75K, but ideally at least 100K. As a first time investor most lenders are not going to be comfortable with a financing scenario that is considered upside down (meaning renovation > purchase price)

If you are talking about ground up construction, there are different nuances. Typicaly you can build your experience resume with being a GC AND being on permits OR being an investor with HUD statments to back up your construction or flipping... I had one deal fall through because even though the investor owned the construction company, he wasn't a licensed GC himself AND this was his first ground up construction. Because he wasn't a licensed GC, he wasn't on permit for any project AND he didn't have any investments of his own. Could the argument be made that he had the experience because of the business he ran?... probably, but the underwriters wouldn't budge and didn't see it that way.

There are options for no seasoning, but there are usually catches. To get 80% cashout, without seasoning, the bar for credit and DSCR is higher AND so is the interest rate. You will need a minimum of 740 and DSCR above 1.20 AND not every state will allow 80% level. There are also optiios where if you know you are going to do a rehab and then refi into a DSCR you can do both with the same lender (still two loans) but seasoning is waived with some lenders. Reach out if you want to talk more.

As long as it is within 6 months of your original purchase date, the rate for delayed finance with DSCR should not be any different than if it was made with original purchase. It's pretty common to do this if you are buying something at auction or with a seller who is not allowing any windows for financing of any sort. You will not be able to get any cash out in this scenario - it is just replacing your cash with a loan in same amount. Not everyone allows delayed financing, so if you hear a "no" keep searching because MANY do.

@Victor Nguyen your income won't matter if you are doing non-QM investor loans like DSCR. What matters is the ability of the property to cashflow, your credit score and your ability to bring a downpayment. The higher the DSCR rate and lower the leverage, the better your rates.

As long as they have at least 20% ownership that would work!

You can do a bridge loan that would incorporate the renovations. Typically it would be on drawn funds only, so you would pay interest only as you draw down on the repairs budget. Frankly, too the lower leverage you take the better your terms are. You are able to refinance pretty easily at 6 months and on an 8 unit would need to show 80% occupancy or have signed leases in hand to get the best rates/terms. Reach out if you want to talk more.

Ususally just showing a signed lease is all that would be required for the lender to consider 75-100% of that rent against your DTI. However, if you get a DSCR loan, your DTI is not a factor at all. Rather it is the ability the property to cover the payment (Rent/PITI = DSCR rate)