All Forum Posts by: Jack Tulloch

Hey Kamal - DSCR loans are designed for non-owner occupied properties. You will likely need to seek out a different type of loan if you plan on living in the property to any capacity.

Adriana - yes, interest rates will be higher for 5+ unit properties and minimum down payment will be 25% generally (opposed to 15% - 20% on 1-4 unit properties). 

Referalls from other investors, researching online and looking at reviews, and BiggerPockets suggested lenders are a few ways to connect with lenders. I suggest contacting a few and having phone conversations with them to find the one that best fits your needs/situation. 

Hey Vincent. Yes, you can use a bridge/hard money loan to secure a property and then immediatley refinance into a 30-year loan. Some lenders may have prepay penalties on the bridge loans (although this is pretty uncommon from what I undertand) so be sure to ask that upfront. 

BP has some recomended lenders you can check out. Like Nate mentioned, choosing the right lender will depened on the type of loan product you are needing. 

Bennett Abel is a solid broker and does a lot of business in the East Coast. Abel Commerical Funding is the name of his brokerage. 

Local realtor, looking at Zillow recently sold, other online sources (Property Shark is one - I think you get one free report through them) are some relatively easy options. 

Kelly - Sounds like a DSCR option would be a good fit given your situation. As others have mentioned, understanding prepay penalties is important with this product. Additionally, finding a lender that is flexible with STRs will be key. Requirements and the specific income they can underwrite will vary lender to lender.

I would suggest calling a handful and asking questions about how they intend to "qualify the loan" (market rents, AirDNA projections, etc.) and other requirements surrounding their STR product.

@Sarah Hatton is knowledgeable in in the DSCR space and more specifically with STRs. Strongly recommend reaching out to her! Best of luck.

I am with a lender and see a lot of STR investors use Proper or Fortress Insurance (Fortressbrokers.com).

Hey Jamal - I agree with AJ here. There are DSCR lenders who are ok with first time home buyers/investors but every DSCR lender will require a credit check of some sort and reserves.