All Forum Posts by: Kristen L Garner

@Josh Young Is correct. I would ask your loan officer to show you options with less or no points. Your rate will go up, but that may make sense for your scenario. If you are using a nonQM product like DSCR and your plan is to refi, make sure you are clear on any prepayment penalties attached to your loan.

It sounds like the lender you were working with has minimum loan amounts. I would recommend talking to other lenders to find a refi product with guidelines that match your scenario. 

Once your loan is transferred to a servicer (usually about 1-2 month after closing), the servicer's website often allows you to play around with a calculator and set up payments structures. The calculator will show you how much your increased principal payment reduces your overall length and amount of debt during the life of your loan. I personally only do this on one of my properties and I just add an extra amount to the principal during my one monthly payment.

Hi Andre! You are right that most DSCR products have a $100k minimum requirement. However there are products with a minimum as low as $50k so you shouldn't have an issue getting this deal done. Down payment should be 20% unless there are issues with the DSCR ratio or your credit falls in a lower tier - then you'd be looking at 25% down. Your closing date also shouldn't be an issue. Most DSCR loans can be closed in 30 days or less with the exception of rural or very unique properties which often take closer to 45 days to close.

Hi, Danny.  I am located in Phoenix, AZ but invest OOS in Indiana.  I'm always happy to connect and brainstorm with my fellow investors.  I bet your PM experience will come in handy as you purchase and run your out of state properties!

Hi Hector! If DTI is the issue in qualifying for your rental purchase I would suggest using a DSCR loan product. DSCR stands for Debt Service Coverage Ratio. It is a Non-QM loan utilized for investment purchases and refinances in which the loan is approved based on the ability of the subject property to cover its own payment rather than being approved based on the borrower's taxes, income, DTI etc.

Hello, "No ratio" rates will be higher and LTV will likely be capped at 70%. There are some ".85%+ ratio" products that will let you go to 75%. I'm seeing 8.250%-8.625% on my current DSCR files. That most often is including a 3 year prepayment penalty. If you go up to a 5 year prepayment penalty the rate goes down approx .25%. If you want less or no prepayment penalty the rate shoots up. Best of luck! There are plenty of DSCR products...you just need to find the right fit for your scenario. I'd be happy to chat about some of the options if you'd like to DM me.

I live in CA but purchase investment properties in IN. Indiana is my hometown so I was able to leverage that knowledge and use some of my existing network to get started.  Once I had a team in place (trusted agent, solid PM options, a contractor) I felt comfortable purchasing. I work with a lot of investors who buy out of state in areas they are not from and do not have ties to though. 

Hi Neil, this shouldn't be a problem for DSCR funding as long as the title is clear. I've worked on some sheriff sales before where title needed wait 12 months or the investors had to file for a quiet title. There are a few title companies who will work around this though! Feel free to DM me some more details. Best of luck!

Hey Derek, 

@Ryan Muska is correct. I would also add that Bank Statement Loans are a great option for 1099 contractors...especially when investors are ready to buy a primary home for themselves since our beloved DSCR programs only work on investment properties. Best of luck!