All Forum Posts by: Jessica Tsao

FHA loans require an appraisal and the appraiser is required to look for termites and will not approve the loan with termites. A professional inspection is required to determine termites and must be remedied to approve a loan with FHA. did you waive loan contingency? Did you waive appraisal contingency? If you waived all the contingencies? If all else fails, I would talk to your agent, FYI online reviews is really big now days.. . Good Luck

@Michael Williams

Hey there.  I grew up in Sacramento! I get made fun of all the time when I say hella or hecka.  Anyways, I am a lender in CA and there's not always a need to pay a broker. Are you looking for a broker for a better rate? Because brokers will take a cut, not necessarily a better deal. How many units is this purchase? What loan amount are you looking for? There are options with direct lenders it just depends on the type of loan. Hope this helps.  Cheers

@Keaton L.

Hi there.. SoCal here as well. I am a Licensed lender in CA. I agree with Reid and yes DSCR loans are great. I am a big fan of the DSCR loan. Basically it uses your rental income as qualifying income. It does not require personal income and if you have a LLC, it can be in your LLC and best part is that it doesn't show up on your credit report. Fico is used to determine rates, 4.20% 30 year fixed is still out there depending on LTV and fico(not for long). I did one personally on my duplex. Hope this helps...cheers

@Amable John Aguiluz XIII

I was charged 1.75% as most of these do require points. The good news is that it will not go on your personal credit report. You can put it in your LLC. Hope this helps.. would love to connect and share or discuss more if you like. Thanks

@Amable John Aguiluz XIII

I am from SoCal too. I recently did a DSCR loan for my own duplex. I got 4.25% fixed rate 30years but yes there is a prepayment penalty. It all depends on LTV credit score and DSCR ratios.

@Ashley Lynn I would cash out refi and get the equity out and re-invest. As long as the monthly payment gives you a positive cash flow. You can take that extra cash $200K or however much and get a second rental income property. That's the name of the game. Grow your portfolio. If you have a great option where you can live in your parents 2nd home, why not for a while and get your 2nd investment property. My math is 1 house @ $500K @ 5% appreciation return or 2 house @ $700K @ 5% appreciation return is much better. All the while, someone is paying your mortgage down. Inflation is real and rents aren't gonna go down. Even Hard money DSCR loan rates are lower than inflation. You are really getting the money for free. If you put it in an LLC it won't even be on your credit report so you can free up options for your primary residence later too.

Hope that helps!

@Srikanth Vad

@Srikanth Vadlakonda. On a purchase yes. Ned is 100% correct, it's the lower of the sales price or appraised value. BUT on a cash out refi you can go up to 75%LTV on appraised value.

Hope this helps

@Charles Morris

I just did a Cash Out DSCR refi loan on my duplex. 75% ltv. I got 4.25% 30 fixed rate in my LLC, not on my credit report.

Do you have a renter in place?  If not, usually they would use market rent -10%.  There are options. 

@Pete Perez

I wouldn’t pay taxes. Why would you pay uncle sam. I would cash out refi and buy another rental. Depending on how much you invested, after cash out refi, you probably now own it for next to $0 out of pocket. Even if it cash flows $100. Rent will continue to go up as inflation is here. I would take the cash out refi money and buy a rental that would cash flow $800. Now you have 2 properties that cash flow $800 or more. And market appreciation on 2 properties. Win win in my books.

@Hoi L.. 
I am a fan of this product. DSCR loans really do help in so many situations. Of course no all situations.
best rates are 740 fico plus. 4.25% is the best I've seen with 1.25% orig. it doesn't go on your personal credit report and on your LLC. There is a prepayment penalty as Mitch mentioned. But most people keep their loans for 7 yrs. It's a great product. I took one out myself so feel feee to ask me. Hope this helps.