All Forum Posts by: Account Closed

You definitely should shop around. Are you doing a conventional loan or is this a DSCR loan? Either way, there are ways to reduce the fees you are paying to the lender. If you haven't talked to any other banks yet, I suggest reaching out and comparing numbers, there could be big differences in origination fees from lender to lender.

0 Votes

Quote from @Jesse Carter:

Just got a DSCR rate quote from one of my lenders and it came out at 8.5% with no pre-payment penalty.

Seems a little high from what I thought it would be.

Anybody get one recently and can tell me if this is a competitive rate?

That rate is competitive, but what is the broker fee? Did they show you anything with total origination costs? That is where the numbers will typically vary the most.

2 Votes

Quote from @Darrell Essex:

Hello all,

so I'm a couple BRRRRs with a lease options in and the issue I'm having is Fannie Mae and Freddie Mac both need a 12 month seasoning period and so-far all the DSCR 30 yr I've found do 6-12 months seasoning. I've gotten both my houses rehabbed and rented in 2 months leaving me and my contractors waiting 4 months for the next project since I'm waiting to cash out to get the initial down payment back. Just need an infusion of cash to fund rehab costs while my initial funds are locked in equity until seasoning is done. I'd be able to acquire fix and flip loans from the money I used to rehab previous properties from the fix and flip loan reimbursements. Does anyone have a solution on a type of line of credit that's not a heloc, or a dscr cash out refinance that is maybe 3 months seasoning so I can keep the train moving in the express lane instead of making a ton of stops. I looked into small business lines of credit today but they will lend 10-15% of annual revenue which where I'm at now is only 68k so obviously I can't do much with a 6k line of credit to fund some rehab phases. Just trying to see if anyone has any creative options I haven't heard of yet. Can't find out what's out there if you don't ask for solutions to problems lol.

Hi Darrell:

There are several options for a cash out refi on a DSCR loan with 3 months seasoning, usually you can borrow 75% of the ARV. I sent you a message, feel free to reach out anytime

0 Votes

Chicago, Illinois

Thanks for the recommendation Jack! Hi Shatirce, I am available anytime to answer your questions.

0 Votes

Cleveland, Ohio

Quote from @Erick Diaz:

Quote from @Eliott Elias:

What’s your question?

So for these DSCR loans, I don't need to provide any tax returns for prooof of income, nor work history?? As long as the deal makes sense and is passive of 1.0 or greater I can possibly get approved?

Erick:

You are correct. A DSCR loan does not require tax returns, proof of income, or work history. The DSCR does not need to be 1 to be approved, you can go as low as .75 on the ratio.

0 Votes

Quote from @Rafael Pinho:

Hi all,

I'm an architect and developer based in Europe and considering investing in the US - new builds and BRRRR.

If I bought and renovated a property in 100% cash, would it be possible to refinance with a DSCR mortgage, being a non-resident?

Hi Rafael:

Yes, there are DSCR programs for you. You would be able to borrow 65%-70% of the purchase price.

1 Vote

Quote from @Aaron Leger:

Thank you both, I have seen similar loans but never heard the acronym. This is very helpful! Any lender recommendations?

Aaron:
I would be happy to answer questions and go over your options with you.

0 Votes

Worcester, Massachusetts

Hi Aaron:

A DSCR loan sounds like it would be your best option. You can put as little as 15%-20% down and not have to verify any income. The approval is based off of the cash flow of the property. As long you have a 640+ credit score and you have 3-6 months of reserves you should qualify. Another good thing about a DSCR loan is you can cash out up to 75% of the ARV after you have owned the property for only 3 months.

0 Votes

Worcester, Massachusetts

Quote from @Matthew Masoud:

DSCR Loans are EVERYWHERE. Use the bigger pockets "Find a lender" tool and just start calling lenders or mortgage brokers and compare rates. Don't overcomplicate it.

Hi Eric:

This forum is a great place to find a DSCR loan. You can easily find a lender on here that can answer any questions you have about this program. Costs and pre-payment penalties can vary quite a bit from lender to lender so definitely talk to at least a coupe of people before making a decision on who to work with.

0 Votes

Since you have owned the property for 3 months, you can cash out up to 75% of the ARV. Current rates would be higher that 7% for a DSCR loan but would probably still save you money monthly if you are paying off high interest credit card debt and the property would still cash flow.

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 0 posts and replied 53 times.

Post: Closing costs.. seems high

Post: Current DSCR rates

Post: Financing To Keep Moving While Waiting For Seasoning Periods

Post: Ohio Mortgage Broker

Post: DSCR loans!! New to this

Post: DSCR mortgage, non-resident

Post: Financing options - help!

Post: Financing options - help!

Post: Where to get a Dscr loans

Post: How soon can I or should I wait to do a cash out refi