All Forum Posts by: David Bilandzija

@Maribel Manibo It sounds like you are already recognizing the pattern in the industry. Before getting my broker's license I spent 10 years working for a direct lender.  We are talking nationwide, wholesale, private money with billions in assets under management.  This lender got its loans from mortgage brokers it approved to do business with.  In that time I learned that the waters are purposely made to be muddy when determining the source of funds.  The wholesale lender I worked with offered a table funding program to the brokers in its network.  They took steps to help table funding approved brokers feature themselves as the source of funds.  Conditional loan approvals and loan applications were white label and loan docs were issued in the table funding broker's name.  At closing the loan would then be transferred back to the actual lender.  The program was effective at concealing the source of funds and it was implemented to attract mortgage brokers looking to enhance their business.  I witnessed several instances where non table funding brokers (approved by the same lender) submitted their loans to other table funding approved brokers.  In short, there are a lot of participants in mortgage lending that aren't who they say they are.  

Investigate, ask around, try checking the Scotsman guide.  Experience and time are the only ways to really be able to tell what's going on behind the curtain.  Good luck.

@Justin Madison bank statement loan programs are ideal alternatives for credit worthy self-employed borrowers.  Borrowers generally furnish 12-24 months of bank statements and a statement from a tax preparer/CPA. 

@Jason C. Generally speaking, private lenders do not report to credit. 

@Joleen Specht Congratulations on getting this one under contract.  I may be able to help - where is the property located?  

@Ben Lin These types of buildings are referred to a mixed-use and they are prevalent throughout Philly and the Northeast.  

Lots of advantages for small business owners to own/occupy buildings like these because they set up well for convenient work/live arrangement. 

@Johnny Scott You have options but they carry some limitations. Minimum mid FICO of 600 can get you in the door at a reduced LTV, 60%. Loan must be for business purpose, investment/non-owner occupied. 1-4's, 5+ unit multi-family and commercial properties are eligible.

@Chris Jackson 5-8 unit multi-family is an eligible property type for a number of DSCR lenders throughout the country. It's a realistic consideration if you are already looking at bank alternatives. These private loan programs will generally qualify borrowers based on the property cash flow and your personal credit. Expect the underwriting to ignore personal income, i.e. tax returns, pay stubs, etc.

@Givo Aghasi Are foreign investors with no current US real estate holdings eligible?

@Jimmy Stainback DSCR is a great route. Rates are at or above 7% presently for 30 year fixed DSCR loans. Lenders may offer 75% max LTV for 4 units but the building will need to generate enough cash flow to qualify. If max leverage is the goal and cash flow is an issue you still have options. There are also lenders in the investment loan space that will ignore DSCR, trade-off being a higher rate but you can still get 30 year fixed financing or long term interest only options based on a 30 year term. Good luck!

@Jorge Gonzalez Remember to factor homeowner's insurance into your calculation.