All Forum Posts by: Jared Rine

@Yulia Orlov..while I can understand your concern and comfort as a potential borrower, DSCR loans really come down to metrics so a lender needing to understand your local or hyperlocal market is irrelevant. Full disclosure, I'm a mortgage broker in CA, and I'm not saying to use me, but for example, I have closed DSCR loans in East Coast states such as CT, MD, DC, FL, GA, DE, NC just to name a few, and don't consider myself an expert in any of them. Me needing to understand the market also didn't really do anything to terms. If I were to suggest, then it would be finding someone who is very knowledgeable with DSCR loans that can help guide you in that process because numbers are numbers, whether they are in NH or in CA. Hope that helps.

@Rebecca B....just adding my $0.02 to the mix.  There are some good responses to the thread. Looking at the situation, your deal should work for what's available in the market at this time, but the market texture is so fickle right now, this all might be different come summertime. Depending on source, I'd expect mid/high 7s-low 8s % range. It would be considered a smaller deal for most, so points might be higher. If you add some interest-only basis, your payment will could potentially be lower than what you're paying now.  Especially if you're just rate/term refinancing, and not trying to obtain any cash out.

The only thing that might be a small wrench would be figuring out rents. Are the long term market rents for larger unit = midterm rental rents?? Most lenders either base off long term rents or STR/airbnb rents. There's no ground I've seen for mid-term rental rents - a lender is not going to look at those rents because it's hard to find data. Most DSCR lenders don't even really want to do STR rents (honestly). That might be the only thing I'd be concerned - what rents are being used and will the #'s work to where you can get a loan. Hope that helps. Good luck in finishing the property.

@Darian Richardson...the money you're looking for is out there, but it's lender specific and not many DSCR lenders offer it. Cash-out at 80% is not the norm but it does exist. 75% is more of a standard and some lenders even are holding to 70%. I think you'll be okay too with it having been on market. Pm if need. Thanks,

@Bryan Hartlen...pay attention to @Caroline Gerardo posts. She is very explanatory and knows what she's talking about. Otherwise I'd say reach out for DSCR loans myself. But if you're using SDIRA funds, has to be non-recourse and thus typical DSCR lenders are not going to be an option.

@Nick Versetto..100% LTC financing does exist out there, but you're going to be held still to 65-75% ARV ranges depending on lenders, and it's not all stated income/no doc/etc. The lenders who offer that type of financing want to look more at your financial situation, and if you haven't done any deals in last 3 years, it's tougher (generally speaking). LTC only includes purchase + rehab, not any holding costs, interest, fees/closing costs/etc., which you would also need enough funds for. Just my $0.02 Reach out if you need. Thanks,

@Pandu Chimata...seems like you got some good answers but I'm going to add my $0.02, as an active mortgage broker in CA. Yes, smaller property should be treated as primary because your story makes sense - u/w'er will likely want a letter of explanation, nothing more. If you do buy in cash, yes you still should be able to turn around and refinance. If you're turning your new house into a rental, and you need income to offset the mortgage and you don't have a lease yet, the lender will need to get a 1007/rent schedule for the house you're leaving/old primary so you can use 75% of that number to use as income/offset the PITIA, so it doesn't hit your DTI as hard. Hope that helps, even if you've found what you're looking for already.

@Angel Barroso jr..going to join the consensus with an easy answer of "Yes, but it depends."   And they would need to be on permanent foundations. What are you looking for, specifically?

@Bryan Buckingham..full disclosure - broker for private money, and do construction loans (mainly in CA, but other states as well).  I'm not going to steal Doug's response (if he responds), but you should be expecting rates in the 10.5-13% range, depending on deal profile. 8% is almost unheard of right now and I wouldn't be expecting that late this coming year, either.  I would also recommend in this environment, that you get to permit out of pocket if it's possible.  Doing a roll up loan (land acquisition, soft costs/permit, vertical) over a 3 year cycle is too much risk for any private money lender in this market texture and I'd be confident to say that, even if they are a local HI lender or a lender who is very comfy to lend in HI. Just my $0.02

@Lindsey Johnson...If you were in CA, I'd reach out directly. You need to find a good mortgage broker (or mortage banker) who has access to a lot of self employment products - bank statement programs, 1099 only, no-income, and then can figure out where you qualify, based on your personal situation. The 1 year history shouldn't be a deal breaker, assuming other factors are in line and can be shown, in some fashion. Just expect to pay a higher rate/more down/etc than Fannie/Freddie conventional and/or FHA.

@Michelle Brast..while I don't have firsthand experience, I'm usually the first line of defense when it comes to anything mortgage/re finance related in my family. My brother just purchased a DH home in NC back a few months and used DHI (incentives were too good not to) and it seemed like the process and loan officer made everything smooth, even when my brother realized they wanted to change from FHA to conventional almost 2 weeks before closing to not have the additional FHA MI. And it was no sweat. Some of the underwriting seemed more tedious than I'm used to at Rocket or one of my wholesale lenders but process was good and he said he'd buy using them again. House is very nice too. Just my $0.02