All Forum Posts by: Dennis Muno

 I second all you've said. Brilliant and true!

I would say if you are buying the land to then build, a bridge loan is the best option.

Bridge loans usually give you money to buy the land and do a phase of the construction. Then after a phase of the construction is done, the loan gets transformed into a more regular loan. 

If you are looking for the best loan type, I would recommend you call a local mortgage broker near you. Unlike banks/single lenders, they are able to shop multiple offers for banks/lenders and provide you with options, heightening your chance of find financing that is the best for you.

I would recommend you start there

So, DSCR loans are not personal income qualifying, but rather asset income qualifying. DSCR lenders primarily look at the DSCR ratio of the home to qualify you, yes, with some credit considerations.

The DSCR ratio of a property= monthly rent/monthly PITI total(principal, interest, taxes, and insurance). Lenders usually lend over any ppt DSCR ratio 1 and above(of course subject to lender approval).

Answering your questions:

A proof of funds could be a bank statement, a verified letter from your lender. 

You need to have the property under contract to purchase before the lender will begin lending process.Proof of funds is for the ability to make downpayment on at closing.

No, if you buy the property under an LLC it is not a commercial loan.Lender define commercial ppt as anything 5 and above units.Hence, commercial loans are for ppts usually 5 units and above.

No, if you buy the property under an LLC it is not a commercial loan.Lender define commercial ppt as anything 5 and above units.Hence, commercial loans are for ppts usually 5 units and above.

Things to consider:

1. For a smooth DSCR purchase I'd recommend you start talking to a lender or mortgage broker as soon as possible and let them get you DSCR purchase loan pricing scenarios with some info such as possible zip codes you want to buy in, your FICO, downpayment amount, etc. That will give you an idea of what options you could possibly have if you want to start the purchase process. Let lender also give you what monthly payment PITI after obtaining the DSCR would be like based on each scenarios

2. Identify some properties you might want to buy, do your numbers and also determine DSCR ratio by the formula above. This is to get you a financial idea. The lender will calculate themselves too during the underwriting process.

3.Go property searching with a realtor, decide on one and get a purchase contract. Go then to the lender you spoke to and work with them to put your required files together for the DSCR loan application.

4. Make sure you know what property rents for/ will rent for. Either, the lender will calculate that himself too.

4. The DSCR loan process: find lender-> submit application->rent schedule->approval(depending on lender.

I hope all I've said has been informative

If the DSCR loan is in your name, yes it will be on your credit.

If the DSCR loan is closed in an LLC, no.

Usually most lenders like to lend for a DSCR $125k and above.However, I will recommend you call multiple DSCR lenders. You may find someone who will assist you

Hard money, private money, DSCR, investor loans, bank statement loans, etc are all possible solutions. The question is which one would work best for what you want to do, and which one would have the lowest cost of borrowing?

I would recommend you call up a local mortgage broker and have them price out all the loan types based on your credit, downpayment amount, other factors and given you pricing and a loan estimate. I believe when you have your options you should be able to make a knowledgeable guess. Good luck!

Hello Stephen,

I would recommend you call a few banks/lenders near you. Compare  their rate and terms sheets and then decide what to do.

Even better, I think you should call a local mortgage broker near you. Unlike banks, mortgage brokers usually have 50+ lender contacts and are able to shop amongst them to find you the lender with the best rate, terms and provide you with options. I think the more lenders you compare, the better your options could be.

I would recommend you contact a local mortgage broker near you. 

Mortgage brokers, unlike banks, are able to shop multiple lenders/banks to provide you with options. This means, some of them may have some loan programs that will be of help to you.

I would recommend you start there. Best of luck to you!

You should contact a mortgage broker near you to see if the can connect you with some no doc options. Usually a mortgage broker will be able to shop multiple banks/lenders and provide you with the best no doc loan option.

Good luck to you

I would recommend you call a few banks in your area or better yet, call a local mortgage broker. 

Mortgage brokers are not lenders but an intermediary between clients looking for a loan and the lenders themselves. Usually they have 50+ banks/lenders to shop from, which means they are able to go to multiple lenders and get their VA loan interest rates and options.

Usually the more they shop, the better your options will be. So, I will recommend you call up a local mortgage broker and ask them to search for VA loan options.

Best of luck to you!