All Forum Posts by: Stacy Raskin

 Hi Jim, A different mortgage credit scoring model is used. It varies based on loan amount, etc so it would be best to connect by phone. 

There are lenders that can do shorter prepayment penalties down to one year and sometimes six months. Some states do not allow prepayment penalties and that impacts the rate which will make it go higher. Depending on the loan amounts and the state, there are different prepayment options. 

Putting all the loans in a portfolio loan usually will result in the investor having to pay 120% of the mortgage of that one property if you want to get it out of the portfolio to buy or sell. There isn't significant underwriting discount fees. Most investors when they find out about how this works are not longer interested since they are having to overpay to get their one or two properties out to buy or sell and there is less flexibility. 

More info on DSCR loans below since you mentioned being new to them:

DSCR loans won't use your income to underwrite the loan. DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further. 

Get Cash Out of Your Investment Property with no Personal Income Needed for the Loan

Pricing Specials for Loans where the loan is submitted and locked in October

This special is good for purchases, rate/term & refinance cash-out loans over a $100,000 = 0.25% off the usual rate

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents.

If you aren't looking to get cash out, you can also refinance out of a shorter term hard money loan or any loan to have a fixed 30 year mortgage term or use the special for savings to purchase an investment property.

More details:

• Loans available for cash-out
• Credits score down to 620 (for loans under $100K, middle mortgage credit score is 680)
• LTV are up to 75% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Non-warrantable condos and condotels permitted for loans above $100K.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Appraisal Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Short term rentals can be structured off of 12 month short term rental history for loans above $100K.
• Fixed 30 year terms or fixed 40 year terms of 10 years of interest only payments followed by 30 years fully amortized for loans above $100K.
• Inquire for additional details.

For the pricing special, I work on DSCR loans in all U.S. states except for: Minnesota, Arizona, Nevada, North & South Dakota, Idaho, Illinois, Michigan, New Jersey, Vermont, New York, Virginia, Wyoming, Oregon and Utah.

I look forward to hearing from you.

Looking to Buy or Refinance a Non Warrantable Condo or Condotel?

Non warrantable condos and condotels that are investment properties can be bought or refinanced with DSCR loans. DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment (if purchase) and market or actual rents.

Purchase, Rate/Term & Refinance Cash-Out loans:

More details:

• Loans available for purchase, rate and term refinance (no cash out) and cash-out refinance
• Credits score down to 620 for non warrantable condos and 640 for condotels
• LTV are up to 75% for purchase and 70% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Loan minimum of $100K
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.
• For experienced investors (one year of investor experience and own home), short term rentals can be structured off of 12 month short term rental history with 20% expense factor. If a purchase, AirDNA projected rents for the property address with 20% expense factor. Other loan programs don't have home ownership requirement.
• Inquire for additional details.
• I work on condotel DSCR loans in all U.S. states except for Alaska, Minnesota, Arizona, Nevada, North & South Dakota, Idaho, Missouri, New Jersey, Vermont, New York, Virginia, Wyoming, Oregon and Utah. For other types of investment properties such as non warrantable condos and 1-4 units, I work on DSCR loans in all states except for Minnesota, Nevada, North & South Dakota, Oregon, Utah & Vermont. I look forward to hearing from you.

Purchase an Investment Property with no personal income verification needed- loan underwriting based on rents, credit score and down payment

Loan amounts down to a $75,000 appraised value, $50,000 minimum loan amount for many states. For other states, it's a $100,000 minimum loan amount.

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents.

More details:

• Loans available for cash-out
• Credits score down to 620 (for loans under $100K, middle mortgage credit score is 680)
• LTV are up to 75% for cash out. 80% for purchase.
• Cash out limits depend on property value, credit score and if the property is vacant. If you aren't looking to get cash out, you can also refinance out of a shorter term hard money loan or any loan to have a fixed 30 year mortgage term or use the special for savings to purchase an investment property.
• Non-warrantable condos and condotels permitted for loans above $100K.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Appraisal Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Short term rentals can be structured off of 12 month short term rental history for loans above $100K.
• Fixed 30 year terms or fixed 40 year terms of 10 years of interest only payments followed by 30 years fully amortized for loans above $100K.

I work on DSCR loans in all U.S. states except for Alaska, Minnesota, Arizona, Nevada, North & South Dakota, Idaho, Vermont, Virginia, Wyoming, Oregon and Utah. Minimum loan amounts vary by state. They are either $50K or $100K. Please inquire for additional details.

I look forward to hearing from you.

Get cash out of your investment property, primary or second home easily online

More details:

• Values determined by AVM (automated valuation model), not a full appraisal
• Quick and easy online verification process
• No cash needed at closing except for $150 for states that require an in person notary
• Credits score down to 640 for primary homes and 680 for investment properties
• CLTV are up to 85% for cash out for primary homes and up to 70% for investment properties (max CLTV depends on credit score)
• HELOC maximum line amounts up to $400,000 for primary homes and $250,000 for investment properties (maximum loan to value (LTV) varies based on credit score)
• Only available on one unit properties such as single family residences, condos, planned unit development (PUD) and townhouses.
• Fixed 5-30 year fully amortized loan terms with 2-5 year draw periods. Full draw required at closing. Subsequent draws can be any amount above $500. Additional draw limit is 100% of total line of credit.
• Up to 50% debt to income (DTI). Income can be from earnings or asset depletion. Spousal income can be considered in community property / homestead states. Income verified online through borrower's source of choice such as bank statements, asset accounts, paystubs and IRS tax filing.
• Properties must have been bought at least 90 days ago.
• U.S. citizens or permanent residents. Property must vest as individuals or a revocable trust. LLCs not allowed.
• Fast funding.
• Application must be completed within 14 days.
• Inquire for additional details.

These HELOCs are only for properties located in California or Florida.

I look forward to hearing from you.

Get Cash Out of Your Investment Property with no Personal Income Needed for the Loan

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents.

If you aren't looking to get cash out, you can also refinance out of a shorter term hard money loan or any loan to have a fixed 30 year mortgage term or use the special for savings to purchase an investment property.

More details:

• Loans available for cash-out
• Credits score down to 620 (for loans under $100K, middle mortgage credit score is 680)
• LTV are up to 75% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Non-warrantable condos and condotels permitted for loans above $100K.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Appraisal Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Short term rentals can be structured off of 12 month short term rental history for loans above $100K.
• Fixed 30 year terms or fixed 40 year terms of 10 years of interest only payments followed by 30 years fully amortized for loans above $100K.
• Inquire for additional details.

I work on DSCR loans in all U.S. states except for Alaska, Arizona, Nevada, North & South Dakota, Idaho, New Jersey, Vermont, New York, Virginia, Wyoming, Oregon and Utah.

I look forward to hearing from you.

Fix & Flip Loans-Financing up to 90% of Purchase Price & 100% Rehab- Up to 75% of ARV

As a mortgage broker, I work with different lenders that do Fix & Flip loans. The programs are created for investors who buy distressed homes, repairing them and then either selling them or holding them for rental income and flipping the hard money loan to a long term DSCR loan where the rents will underwrite the loan.

Program highlights:

• -Any level of investor experience
• -Funding in as little as 10 days
• -Credit scores as low as 640, more options with 680+. Better credit comes with better terms. 
• -Non-owner occupied Single Family, Multi Family up to 4 units property types
• -Purchase Loan Amount – up to 90% of Cost
• -Rehab Loan Amount – up to 100% of Cost
• -75% maximum after repair value
• -12 to 24 month loan term with Interest Only payments. At the end of term, can either sell or refinance into a longer term fixed DSCR rental property loan. This can be done earlier as well if the property is ready before the term is up. Properties can be refinanced after 3 months from close of last loan if doing a BRRRR and would like to use the new post rehab appraised value and either get cash out or convert the loan to be a better rate and long term financing.
  -Decisions and term sheets are issued quickly. Terms will depend mainly on borrower's credit score and location of property. Experience is a factor but is secondary to the other criteria. Loans offered in all U.S. states except for Idaho, Iowa, North Dakota, South Dakota and Utah.

There are more lending options in: Washington D.C., AR, AL, CA, DE, CO, CT, FL, GA, HI, IL, IN, KS, KY, MA, MD, MI, MN, MO, NC, NJ, NH, OH, OK,, PA, SC, TN, TX, VA, WA, WI, and WV.

I look forward to hearing from you. 

It's best to discuss with lenders the closer you are to making a decision. After you have a property identified is better since rates can change very frequently. Also, DSCR loans aren't regulated the same way so the rates and terms can change last minute- even right before closing (versus in conventional loans that's not allowed). It's important to work with someone who's reputable for DSCR loans because of that. Also a rate is just a quote until a loan is locked which is usually a 30 day lock so it's really doesn't mean anything until the rate locks.

Some investors wait to lock the loan until they get the appraisal back since if they have to do work on the property to close the loan and it goes beyond 30 days, the investor will generally have to pay rate lock extension fees. The property appraisal has to be marked "as is" by the appraiser and not "subject to" doing whatever repairs that are needed to close. If marked "subject to" the work needs to be done and the appraiser has to go out and verify the work is done and submit a report addendum. 

Mortgage brokers who specialize in DSCR loans can be helpful since they have relationships with DSCR lenders. DSCR lenders generally are not advertising directly to the public so having a mortgage broker with established relationships can help you get better terms such as lower down payments and better guidelines that benefit the investor. Generally companies like credit unions, lenders who specialize in conventional loans and big banks are not the best for DSCR terms since they generally may not be selling off their loans at the end to replenish their cash versus DSCR lenders have investor pools that are buying the newly closed DSCR loans and that replenishes the cash for new DSCR loans. That's why you want a niche DSCR lender.

More on DSCR loans: DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the better. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further. 

DSCR could be a good option. Working with a mortgage broker who speciazlies in DSCR loans can be helpful since DSCR lenders generally don't advertise directly to the public. Putting down around 35% is likely for a 1-4 unit. The extra down payment is likely due to the lender seeing it as a higher risk loan due to there being no U.S. credit history or in their view need to maintain a good profile in the U.S. since you have a life in another country.

More on DSCR loans: DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the better. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on. 

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further.