All Forum Posts by: Jeff Chisum

Quote from @Kaylin Gonzalez:

Quote from @Jeff Chisum:

Quote from @Zach Edelman:

DSCR loan is qualified primarily on the cashflow of the asset. For an STR, the lender, assuming they are STR friendly, would likely use AirDNA projections, historicals from the seller (if they exist), or an STR 1007 market rent schedule to qualify the rents. They are purely for investment purpose and will require you to sign a non-owner occupancy affidavit at closing stating you don't plan to occupy the property for more than 14 days out of the year.

A second home loan is as it sounds, a loan for a property that you will use as a second home, and live in. Rules for this loan product require that the property is rented no ore than 180 days per year or generally half the time. This loan will be qualified on DTI/Tax Returns.

Just want to clarify your statement because I see this offer from DSCR lenders.  The policy states the property has to be available for over half the year for your own personal use.  By listing and renting on the OTA’s like AirBnb and VRBO you never lose the ability to occupy the property because they are not facilitation a legal lease agreement.  Additionally you are released from any restrictions for occupancy after one year.

So example I buy a property near the smokey in tennesses right I go up in that area every year for one week I would still have the keep the property still vacant for six months or can I have it up on the OTAS till the week I go ? 

Bottom line is during the first year you can’t put a lease agreement in place where legally you couldn’t occupy if you wanted to.  The policy says it has to be available for at least half the year.  If you just put it on the OTA’s year round it’s technically still available for you to occupy 100% of the year.  Happy to jump on a call if you would like to send me a DM

If you qualify the 10% down second home occupancy loan is going to keep more money in your pocket and the interest rate will be lower. 100% of my business is helping clients with financing for STR's in all 50 states. 90% of my clients used the 10% down second home occupancy loan (we have a unicorn) and the rest is for the most part DSCR. Feel free to send me a DM. Would love to hear about the dream.

Quote from @Zach Edelman:

DSCR loan is qualified primarily on the cashflow of the asset. For an STR, the lender, assuming they are STR friendly, would likely use AirDNA projections, historicals from the seller (if they exist), or an STR 1007 market rent schedule to qualify the rents. They are purely for investment purpose and will require you to sign a non-owner occupancy affidavit at closing stating you don't plan to occupy the property for more than 14 days out of the year.

A second home loan is as it sounds, a loan for a property that you will use as a second home, and live in. Rules for this loan product require that the property is rented no ore than 180 days per year or generally half the time. This loan will be qualified on DTI/Tax Returns.

Just want to clarify your statement because I see this offer from DSCR lenders.  The policy states the property has to be available for over half the year for your own personal use.  By listing and renting on the OTA’s like AirBnb and VRBO you never lose the ability to occupy the property because they are not facilitation a legal lease agreement.  Additionally you are released from any restrictions for occupancy after one year.

You will get the attention of a solid real estate agent when you have a true pre approval in hand.  Yes you can go through the pre approval process with a soft pull.

I can connect you with some of my clients who would be willing to visit

20% down

720 credit

1:1 ratio

7.875% no points

$1800 lender fees

3 year PPP in states where allowed but we can originate in all 50 states

Fully delegated.  We control of the entire process; processing, underwriting, closing, funding

Worked with same investor for three years.  We know up front what can and can’t be done.  Can use AirDnA for short term rentals 

Quote from @Karolina Powell:

Quote from @Alex Hileman:

Unfortunately this is common with DSCR and commercial loans. Regulation Z does not apply to most commercial loans, and you do not have the same consumer protections as you would from a residential loan. The commercial lender is not required to disclose borrowing costs, interest rates and fees upfront and in clear language. It's really the Wild West.

Right now I am dealing with a DSCR lender that switched my client's product to a Bridge loan and gave him a very hard time when he asked for a copy of the appraisal. We've had to keep extending closing for weeks because his communication is almost non-existent. As soon as my client paid for the appraisal and signed up with the lender, he stopped communicating and has outright refused to contact the title company.

Commercial lenders are a nightmare. I would highly recommend going through a mortgage broker or finding a lender through referrals.

 I would love a link to your podcasts if you don't mind.  

 I will send a DM

Hate that you are experiencing this. I have run into so many clients that have had bad experiences with DSCR loans. I love our delegated model because we keep control of the entire process except for appraisal and title. I tell our clients the DSCR loan is the easiest we originate and it's because of keeping that control but also it's due to working with the same investor the last three years. My team has done over 100 DSCR loans and that's another key. Experience. I've had so many clients frustrated I put together a few podcast episodes trying to educate people about common pit falls.

If I have a property on AirBnb 100% of the year I never lose the ability to occupy the property.  You are released from any restrictions after one year.  So you could get into a lease agreement that was more than half the year at that point.

12 month history of payments would be fine at my bank