All Forum Posts by: Mark Munson

Hi @Austin Bouchard

As others have said, use the Find a Lender tab. Get multiple quotes and make apples to apples comparisons. Assuming good credit, with that LTV, you should be near 6.5%. You shouldn't need to do a buy down and the break even on a buy down can be 4 years on average. Above a 1.25x DSCR may get you a further reduction on your rate, but floor rates are around 6.5% with most DSCR lenders. Assuming a $150k+ loan size, you should be at or lower than 2% on origination fees. Lastly, just make sure the lender is rate locking you and don't pay any upfront fees. Best of luck and feel free to reach out if you need any more advice.

Hey @Matthew Duffy

Welcome to BP! Feel free to connect if you need any advice, best of luck!

Hi @Carol Burns

You can find lenders by using the Find a Lender tab up top of the BiggerPockets website. You can also find lenders by looking at your local real estate investor association website. DSCR does not cover rehab as mentioned above. You will need to utilize a fix to rent loan, then after the rehab is complete refinance into a DSCR loan. DSCR rates begin at about 6.5% and go all the way up to 9% or so, your rate is determined mostly by your credit score and the Loan to Value. Feel free to reach out if you need more advice, happy to help.

Hey @Colin Rawlings

I just got back from speaking at the North Carolina Real Estate Investor Association in Wilmington, NC about financing. I suggest joining that local community, they also have a chapter in Fayetteville. Get connected locally, that is the fastest way to get immersed in a market. Feel free to reach out, happy to help any way I can. Best of luck!

Just to clarify, a tenant does not have to be in place for DSCR loan, nor do they have to be moving in soon. They will use the 1007 or 1025 as the rental income figure.

@Martin Yates

Here is the direct wording from DSCR guidelines about the situation, specifically regarding seasoning:

"Properties obtained through inheritance or divorce are eligible immediately without ownership seasoning to use the appraised value for a cash out refinance." 

You will have to refinance into an LLC/Corporation/Trust that your wife owns and she will be the guarantor. Please reach out if you need more advice.

Hey @Jose Gonzalez

Welcome to BP! 

Hey @Mario Ballciti

I'm in Orlando and we are a direct lender and brokerage working solely with investors. Feel free to connect

Hi @Charlice Arnold

I have worked with a lot of banks in this space and the one thing I stress is communication. If they are taking forever to respond or they are less than articulate, thus creating an ambiguity, I go elsewhere. If the account executive or loan officer is constantly saying, "Let me circle back with you" or can't answer underwriting questions, then that is a problem. Also, if they require a full appraisal on a short term loan, that is an issue as well. Those typically take longer and cost you more money. I would avoid any upfront fees or applications fees, everything should be paid at closing, so we all have the same incentive to get you to the closing table. I generally want my point of contact to be an investor themself, because they can be a mentor, not just a lender. There is a lot I could touch on, feel free to reach out if you need more advice. Lastly, you can use the find a lender tool up top of BiggerPockets to find reputable lenders. 

Hi @Christopher "Bear" DeSanctis

The debt service coverage ratio is derived from measuring the PITI (+ Association dues if applicable) versus the gross monthly rental income. Most DSCR lenders are not reducing the gross monthly rental income for vacancy or expenses, they are just taking the gross figure determined by the appraiser via a 1007 or 1025. As long as the ratio is 1 to 1, you are good to go. Most lenders nowadays can go below a 1 to 1 ratio, but the LTV may get reduced and the rate will increase. Feel free to reach out if you need any advice.

 Enjoy the event and feel free to message me if you want to set up a call.