All Forum Posts by: Kristen L Garner

 Yup!

Hi Shahrouz, There are DSCR loans that offer no seasoning if you can show proof of rehab being complete. There are also some with 6 month seasoning where you don't need to show proof of rehab. Sounds like you are past the 6 month mark! The max LTV on a DSCR cash out is 80%. Feel free to DM if you'd like to run some numbers.

Hi Faiz, The same rules will apply whether the property is paid off or if it has an existing mortgage. It sounds like you may have 2 years of income history on your tax returns but the second year is substantially higher than the first? If this is the case, most lenders would average the two when calculating your income. There are some conventional loan products that will allow you to use just one year of tax returns but it depends on many factors.

Alternatively, there is a category of loans called non-QM. This includes bank statement loans where income is calculated based on 12 months analysis of your bank statements and not taxes. This is most common for self employment situations and in most cases you need to show you have been in that line of work for 2 years (business license or CPA letteR). There are P&L loans where income calculation is based off of a P&L made by your CPA. There are also P&L loans where a self made P&L statement can be used. In that case, most guidelines would require 3 months bank statements to confirm the info. There is also DSCR but it sounds like this will be your primary residence. DSCR is awesome, but only works for investment properties. DSCR (debt service coverage ratio) qualifies you based on the asset itself cash flowing. You take the monthly rental income and divide it by the monthly payment (principal + interest + taxes + insurance) and if that number is greater than 1 you have met the basic requirement for DSCR. There are products that allow you to go under 1, but 1+ will get you the best LTV for a cash out refi.

Lots of options! Best of luck!

 @Rob Schou I sent you a DM.

Hey Rob! It depends on how much equity you need to pull out and how long you think you will need it for. I'd run the numbers for a DSCR cash out refi and compare them next to a HELOC and a HELOAN. If you cannot qualify conventionally for a HELCO or HELOAN you could try a non-QM second mortgage.

@Alan Santini Yes, we do rural DSCR cash outs in North Carolina. If you DM me the address I can review it to see if it meets the rural guidelines for no LTV hit.

Hi Sai, I invest in Indianapolis.  I also work with investors who buy in various areas of Ohio.  I'm still seeing investments that pencil out in both states. DM me if you'd like to chat and best of luck! 

Hi Jason, welcome! I personally invest out of state in IN but I work with flippers in IL.  Best of luck and happy to connect if you want to chat anything over. 

Hey Nick, There are 80% LTV cash out options on some DSCR products. You just need to hit a certain credit score threshold and the property needs a .75 or higher DSCR ratio (monthly rental amount divided by PITI). Once you drop down to 75% LTV there are plenty of other options and rates get a little better than what you will see at 80% cash out.

You will want to explore the category of loans called "non-QM". The most popular in this group is DSCR (debt service coverage ratio) where you qualify on the property itself rather than your personal income, taxes, DTI, etc. It is popular amongst investors because you don't get capped at a certain amount of products, it requires less paperwork, and it doesn't look at DTI/taxes/income.
However, there are other loan types in this category as well such as Bank Statement Loans, P&L Loans, Asset Based Loans, etc.
Generally speaking you will be able to get 80% LTV on a cash out refi (as long as credit is decent and property doesn't have any super unique qualities). You will also want to take seasoning into mind. Different loans have different seasoning periods - so you'll want a nonQM loan with low or no seasoning and that will still allow you to use the higher of the new appraised value vs the original purchase price.