All Forum Posts by: Stacy Raskin

Where are you trying to buy (what state) and is it for you to live in it or to rent it out? DSCR loans are for rental properties.

Lenders love being in first position. It means they think they will get paid back if a foreclosure. 2nd position HELOCs with rising rates is worth considering. 

@Carlos Ptriawan, I would look at how rates have gone up in the last couple weeks. There are also additional LLPAs for residential lending that have went into effect which makes it more expensive for borrowers. 

Nobody is doing 5% DSCR or owner occupied loan rate right now. Bankrate is most likely quoting significant discount points such as $20-40k in discount points for an investment property loan to get to 5% for an 800 credit score and a larger down payment.

7-8% is more likely for a DSCR loan depending on credit, LTV, rents etc.

Fixed 2nd mortgages are a good option as well to get cash out of an investment property. HELOC rates have been going up like credit card rates due to the Federal Reserve board raising rates. It's also harder to find investment property HELOCs and terms have worsened for borrowers because of incidents like Silicon Valley Bank and Signature Bank failing which makes the market nervous. This in turn, causes lenders to tighten up their lending criteria and eliminate products they consider more likely to default. Lenders like to be the first mortgage on a property. They see anything else as much more risky as they figure they won't get paid back as a second lien on the property if there's a foreclosure.

Fixed 2nd mortgages are a fixed 30 year fully amortzied term (or shorter term) that can be refinanced in the future when rates are lower. The benefit is that the rate and payment are fixed, you get to keep your low first mortgage rate and you also get cash out of your property for the next deal. 

Based on what you mentioned, I agree with your agent. 

What state is your property in?

Lending can be more difficult for over 4 unit deals. If you're looking for an option for a 30 year fixed mortgage (or something like that), 5+ units require 30% down versus 20% down for 1-4 units. Generally rates are higher for 5+ units compared to 1-4 units and they require a longer and more detailed underwrite. 

What state is the property located in?

What city, state is the property in?