All Forum Posts by: Salvador Auciello

Hello Nicholas,

For DSCR loans there are a few States that require NMLS license such as Oregon, California, Nevada, Arizona. Now keep in mind you are not going to give the loan officer/ broker any money like Ernest money deposit or any funds other than if they will pull credit.

Now if you work with a direct lender some don't ask you for money to pull your credit. 

You do have to be careful on who you work with due to the fact you will be giving up social security number and other identity items.  Find reviews and or shop and compare ultimately go with your gut. 

Hello Dante,

I am an Account Executive with the Lender (wholesale lender) and work with Brokers all the time.

When it comes to hard money it really depends.

I see my brokers make an average of 2 points on a loan.  Now imagine that loan falls apart and they have to go hard money.  the borrower tired multiple places so the logical place to go is hardmoney.  Some hardmoney Lender will do matching points.  Like if they charge two points the broker can charge 2 points.  I think that if the commission is to low for the broker he or she will go somewhere else.  

What do you charge as a hard money broker? and what is your average rate?

I agree that a broker should be flexible not to kill a loan. 

I work with hundreds of brokers and I don't mind sharing feed back.  Lets connect.  I am also a good referral source for deal that go south if you are competitive. 

Depending on LTV and credit you can get your rate down to 6.5%.

You can do it either way deed it now or do it at refinance under a DSCR loan.

Some lenders have a seasoning on title.  I know if a few that don't care about title seasoning. 

Let me know if you need a recommendation. 

I know an investor that can do Manufacture homes with DSCR financing. DM if you need assistance

It's not difficult to lend on low credit borrowers. 

Below 575 FICO you would have to go Hard money and it will be a loan to value of 65% or less.

At 575 there are some investors that can do 30 year fix but at 50% LTV.

The market really tightened up in the last 3 years where they were better options. 

You need to have a 620 FICO to go 70% LTV plus.

Network and find hardmoney lenders that would work with you or find a co broker that will split the deal with you.  DM if you want me to guide you on choices for your borrowers. 

@Samuel Coronado I have ground commercial investors.  Do you have any experience with creating a new park or any other ground up? DM and lets connect. I can point you in the right direction. 

From my experience with brokering hard money for investors they care by far the most can the loan be done.  To consider hard money most have either challenge credit or some challenge where hard money is needed. 

I have seen DSCR rates as low as 6.5% with discount points and actually a credit to borrower for a solid credit and low LTV in NY. However depending on variable factors as DSCR ratio, LTV, FICO, loan amount, Prepayment penalty or not it can range from 6's to high 8's.

Including for unique cases for Foreign National loans.  

When it comes to DSCR loans success can be based on how the Loan is set up. I am an Account Executive for the Lender. Success would be understanding the matrix for the the program and discuss with the broker any guidelines that can cause the loan to decline. Also it will be specific to the region where the loan is going to be done. A good loan will address up front if the loan will debt service or not and have contingencies accordingly. The are always multiple variables such as:

are the gift funds involved

Property type

condition of the property

Is it rural

Title seasoning

Reserves

LTV

What is the estimated DSCR ratio

Citizenship status: Foreign National, ITIN, Citizen, Resident, permanent residence

Does borrower have investor experience or not

Mortgage payment history called a VOM or proof of timely payments

Gift of equity or not

100% gift funds or does borrower have at least 5% down payment and their own reserves

how many acres does the property have?

Property type such as SFR, condo, unwarrantable condo, condotel and so on

And I can go on and on.

Success is set up front for smooth loan. 

Hope this helps... can't tell you how many times I had to save DSCR loans that fell apart some where else.

Hope this helps shed some light in the matter. 

@Todd Fry give me I ring I have a large network of commercial lenders and investors that finance mobile homes.  DM and I will point you in the right direction.