All Forum Posts by: Dennis Muno

Since you are travel nurses, I am guessing you are paid 1099. There are still options for you. There are many lending options to proceed:

1. DSCR loans: Your personal income is not used as proof of income. Rather if the property monthly rental income can cover the monthly Principal and income, taxes and insurance, and sometimes HOA fees(PITIA). You get qualified usually based on credit and DSCR ratio, with other lender specific requirements.

DSCR ratio= Monthly rent/PITIA. Usually a ratio of 1 and above is good. 1.2 and above with a 660+ FICO will get you better loan pricing. Some lenders can do DSCR ratios down to 0.75 but note your loan pricing will be crazy high. DSCR loans usually have interest rates 1-2% higher than residential interest rates. Keep in mind it is possible to buy down your rate usually 2-3% as long as that does not fail the points and fees test. Ask a lender about that.

DSCRs will usually be used for if the property already has tenants and is cashflowing. Some lenders will lend based on estimated rent but your pricing will be higher. This loan is not used for rehab. Can be used for purchase, refinance, cashout refinance.

2. Bank Statement loans: Even better, and will get you better pricing than DSCR loans because you show proof of income, meaning lesser risk to lenders. Lenders will usually qualify you based on your Bank statements for usually 6 mos -2 years. Check with lender for pricing. Even better for self-employed 1099 workers

3. 1099 income loans: Like bank statement but your 1099 income documents will be used to assess risk and qualify you.

4. FHA loans like you said are possible but get a lender to check FHA guidelines for self employed/1099 income earners before you proceed.

5. Hard money/private money to buy property and do some rehab. Once rehab done and property is fixed, you can refinance to either a DSCR refinance or bank statement refinance to get lower and reasonable monthly payments on property. For DSCR once property is cash flowing you won't have to show income just rental income vs PITIA.

If HELOC- REMN Wholesale licensed in FL can help

If Private/ hard money- Equity Wave Lending can assist you

I would say call up a few private lenders near you and ask them for quotes. Or, you could call your local mortgage broker and have them call up a few private lenders based on numbers like FICO, ppt sales price, downpayment amount, Loan amount sought and see what pricing you get.

I would recommend you also start calling up a few lenders to see what can be done for you and what loan products will be able to assist you based on your estimated FICO, property you want to buy for house hack, downpayment amount, property sales price.

Call up 5 lenders near you, let them run scenarios and then give you some pricing so you know what numbers you'll be working with. Best of luck!

Hello Harrison,

Well a HELOAN and a DSCR are different with different conditions for approval and financing.

For a HELOAN, you likely will have to show some proof of personal income. Since you transferred to self employed?? How has your income been? On the upward or downward? On the upward, the may be options for you. How much is the home worth? Current loan/lien payoff? How much equity are you looking to pull out?

For DSCR cashout refi? What is the PITI(prinicipal&interest, tax and insurance) on the home? For this loan your income qualify document will the DSCR ratio(monthly rent/monthly PITI; ratio of 1.2 and greater good; below 1 possible with some lenders but with higher pricing) and credit(660+ for best pricing). All loans and their pricing are usually based on risk to lender.

I don't know what your income trend has been but a DSCR cashout refi seems like something to look into. Your FICO, DSCR ratio will determine pricing you get.

Whether DSCR cashout refi/ home equity loan, I would recommend you get pricing before you proceed

I feel your pain. This is so bad. So let me understand. Was the loan rejected? It sounds like you may lose your earnest money deposit. This is so unfortunate. I don't know if this applies to your situation but I know for FHA loans I know 75% of your rental income is considered income that can be used for qualification.I don't know if that relates to you not having 25% equity in your rental property.

I don't know if anything can be done in 5 days unfortunately, especially if this is a hindrance that will prevent you from being approved. It seems you may have to start the loan process for another loan again.

Sorry you have gone through this. I feel for you

I think you had a bad lender. What type of loan was it again? And why did it take 60 days or so to get the loan closed?

Also, why did it take so long to send you a closing disclosure? It sounds like the bank did an awful job

You usually, depending on lender will not need to show experience for DSCR loans. Usually, the experience factor for qualification and the pricing you get shows up for construction loans. They usually will ask for projects done in the last 36 months.

For DSCR, most likely not that they would ask for such rental experience

Have you tried calling a couple of lenders near you to see if they are willing to lend? Call up a local mortgage broker and see what they can do for you.

Perhaps you could start there

Hello Rudy,

Maybe give your local mortgage broker a call. He usually will be able to get you multiple financing bids from a minimum of 5 private lenders he may know and present you with the financing options for you to consider.

I would say this is a good way to start.