All Forum Posts by: Stephen Caceda

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Sounds like the issue is the lender you are working with does not allow first time home buyers for DSCR. Adding a co-signer is an option but know that there are options for lenders that allow DSCR for first time homebuyers. I work with a lender that allows that as long as we can document some explanation that the borrower doesnt plan on occupying the home as a primary residence. One example is a had a client renting and working in Miami but wanted to purchase a rental in Orlando near the parks. It was obvious the client was not going to commute from Orlando to Miami for work. The lender approved it no problem with 20% down.

Where did the tax lien show up on the lenders underwriting ? 

Depending on where it’s coming up in the loan file you may be able to switch to a lender that doesn’t need that. 

Nicholas is correct. Brrrr is difficult without getting the right “entry” on a property. Only thing I can add is that there are lenders that can go to 80% cash out to help get you closer to making the numbers work. 

I can  offer 80% cash out on an investment property for example 

Hey Zulu, Id love to offer terms on the purchase of the one property. I offer very competitive terms. Feel free to reach out and I can provide a quote ! 

I can do 80% cash out with no seasoning period. 
feel free to reach out ! 

Yes I can do 10% down, but only if the seller carries a 10% second position. 

So effectively 90% CLTV (combined loan to value)

Something to consider, I can do a cash out refinance to 80% with no seasoning. It's a 30 year DSCR. The only additional thing that needs to happen is make sure appraiser makes note of why the value increase in as is vs previous purchase price. And an additional appraisal review ( like an AVM or BPO)

Hey Bans, the ARM seems like a great option for the increased cash flow in the short term and interest savings for the 5 year period. Like Michael broke down above. So the question is going to be where you think rates will be in 5 years and if it will warrant a refinance at the time.
If you would like a second look id be happy to provide quotes. To give you an idea for the 30 year fixed I could offer the following :

-Rate: 6.750%
-Payment $5,691 
-Prepayment 5/4/3/2/1
-Broker and lender fee : 1.00% combined 

Only way would be to collect a few quotes and move forward with the one that provided the best set of terms. Generally most people you speak with are going to provide you a quote with their "standard" commission built in and anything less would be them taking a reduced commission to win your business. 

As standard practice I offer my best pricing the first time to not have to go back and fourth like a car salesman to win business. However I have made exceptions in the past for certain clients. 

Something to consider though, just because someone is offering a better rate does not guarantee the loan will close or that it wont be filled with headaches. DSCR loans have MANY variables that can impact eligibility and those variables all vary from lender to lender. Understanding those variables is important in making sure the deal actually closes. A new loan officer or one not familiar with DSCR might offer you the best interest rate and fees on a DSCR loan because their pricing engine told them, but your specific scenario may not fit.

for example, a deal I am currently working, First time investor, First time home buyer, living rent free, seeking 80% LTV purchase, Using Short term rental income to meet DSCR, with gift funds.

Each of those things individually can be done at one lender or another, but knowing if it can be done at a single lender is the difference between someone who knows what they are doing vs someone just quoting interest rates.