All Forum Posts by: Derek Brickley

Hi Juan!

I think it depends on your situation, but currently you actually may see better rates/fees on a DSCR loan. The loan level pricing adjustments are harsh for investment properties, but I would agree with the other contributors above in some aspects. If it is less than $100,000, DSCR would be very difficult to lend on and your rates/fees would be significantly higher.

Also, with $10k of your own money available, finding a DSCR lender that allows gift funds or has a shortened seasoning period would be important. We work with a variety of investors, but depending on value we may allow seasoning of downpayment funds for only 10 days. You will need to get creative, but DSCR may actually be a good option without income verification and with trying to find private money.

Hi Hyeseong:

"Pennsylvania has a statute prohibiting prepayment penalties on residential mortgage loans (apparently only those under $50,000 on one- to two-family property) (41 P.S. § 101, 405) and another statute prohibiting them altogether on loans made by second mortgage licensees (7 P.S. 6612)."

Although DSCR loans are a business purpose loan, the note is still in your personal name and a 1-4 unit is still residential. Anyone offering those may be trying to use a loophole, but I would make sure you vet them carefully.

https://www.cga.ct.gov/PS96/rpt/olr/htm/96-R-1211.htm#:~:text=Pennsylvania%20has%20a%20statute%20prohibiting,licensees%20(7%20P.S.%206612).

Agree with @Jay Hurst.

For conventional, it is hard to get under $50,000 with points and fee limits. For DSCR, $75,000 is typically the lowest we see approved with few exceptions. You may be able to do a portfolio loan at some point and refinance multiple properties.

Love Detroit! @Travis Biziorek.  I think it depends for appreciation, as all markets are different.  It may be more difficult to see appreciation in the lower priced markets, but there are certain markets that are actively causing appreciation and those are the best to be in.

Unless there isn't enough equity in the home (from your numbers it sounds like there is) you won't need to show any money in your bank account. With you doing significant repairs you may qualify conventional, but we are seeing that a DSCR Investment Loan might actually give better rates and fees than a conventional investment loan.

Other lenders in the chat, where are you going for 50k loan amount DSCR?? We are stuck at $100k loan amount minimum with some exceptions down to $75k loan amount.

I would strongly recommend you reach out to a real estate agent, a good investor friendly buyer's agent will help you find small multifamily properties.  For your own purposes, you can filter on Zillow, realtor.com, redfin, etc. for multifamily properties.

 Living situation!  What is it that you are looking for?

Hi Jack!

I am currently in the process of a househack, and we have previously helped others through it from the lending side.  If we might be able to help, feel free to reach out.

We probably could do this, but in all transparency you would be much better off going with a smaller local lender who might have more flexibility and better terms. Investment property HELOC will not be great, at least not majority

Hey Remi! Do you know if you are looking for a DSCR investment loan or a conventional?