All Forum Posts by: Jonathan Taylor

@Shannon Reburn Not all DSCR lenders require LLC vesting but more and more of them are. I have lenders who still lend and vest to individuals but you will have more options if you vest in an LLC.

@Rogelio Andres Jimenez it depends on your situation. Conventional investment property loans usually garner better rates but require tax returns, income/employment verification and DTI calculations. This would be the best option if you are an A paper borrower.

For bank statement/DSCR loans, these are easier to obtain but have higher rates and your loan amount would be limited by the debt coverage ratio. Considering the high rates, 75 LTV is becoming more rare but doable on superb cash flowing properties. Most of the cash out loans I am originating are 70 LTV. This option is better if you do not qualify for conventional.

Hope that helps

@Adah N. if the investment properties report on your Schedule E, you can use (depending on the lender) 75% of the rental income to offset the investment property PITI. Two years is a fannie/freddie requirement but HELOCs are bank offered products so they don't have to go off of the government guidelines. I would look for another lender who would use 1 yr of rental income.

@Mistidawn Lee A renovation loan is not based on the rental income the stabilized property will receive. It is based on purchase price, renovation amount, ARV, FICO, experience and liquidity. These loans are perfect for what you are doing.

The refinance is where you would need to have your numbers in line. Some lenders can do a DSCR loan based on appraised STR income but this is market dependent. Make sure you can pull some or all of your cash out at 75% LTV with rates in 7-8s. If the ratios work for you then this is the best course of action.

@Travis Cogburn congrats on the amount of equity and for your refinances, its best to explore all options. Portfolio loans aren't pricing out as competitive as individual loans in this current market but new products are coming live all the time. Its best to talk to a broker and see what loan products fit with your needs. Regarding a recommendation as to a lender, I am biased as I am a broker, so I would suggest looking at the find a lender tab in BP and research the lender.

Happy to answer any questions and advise as best I can. 

@Sandy Sandy I support the find a lender portion of BP, you can search reviews, lender's reviews and research the company. Type in your scenario and see what comes up. Let us know your questions but always vet the company. 

@Alex Baur congrats on the creative thinking but DSCR loans strictly prohibit owner occupants. The loan is for business purpose and cannot be used for this purpose. I would keep saving and working while learning. You'll get there.

@Matthew Addison Happy to discuss options with you. Sent you a DM

@Aj Oxley little to no money is hard to achieve as your first purchase of a multi family house hack 3-4 unit. Also, 3-4 unit for house hack conventional require 15-25% down. In these cases, unless you have a family member willing to put the rest of the money down, these deals wouldn’t work.

You can look into the NACA program but this program takes time and is not a fast moving loan.

Keep at it and continue saving.

@Carrie McPeek sent you a DM as one of my most active clients invests in Sanford.