All Forum Posts by: Tyler Warrick

For Conventional you must qualify for 1) income 2) assets and 3) credit. For DSCR (Debt Service Coverage Ratio) you qualify based on if the property will cash flow or not (Does the rental amount cover the mortgage payment at least 1:1). Not all lenders do DSCR loans.

Conventional loans -- you should know if you pre qualify before you purchase the home.

DSCR loans -- it's harder to tell, as you must wait for an appraiser to give their opinion of fair market rent.

What state are you looking to purchase in?

 Oh my goodness, I didn't even see that part in your first sentence! Thank you for pointing it out.

For Conventional loans (best rates on investments) everything I said is still true. However, you will be able to "offset" the subject property's mortgage amount based on the fair market rent that the appraiser deems is fair for the property/area. Keep in mind they will use 75% of the monthly rental amount to offset the mortgage payment (i.e. the fair market rent is $2000/mo, the lender will be able to use $1500/mo as income to offset whatever your mortgage payment comes out to).

DSCR options are great if you CANT qualify for Conventional loans. They have higher rates and typically have prepayment penalties, however they require much less documentation.

What state are you looking to purchase in?

All funds that you use towards your down payment + closing cost must be vested for at least 2 months. If you are referring to cash as in mattress money/physical cash it cannot be documented.

Gift funds however, typically don't need to be sourced. Just make sure the lender will allow for x amount of gift funds depending on the loan program you are going with. 

Nice work, @Mark Nicholson! Checking in, did you end up moving forward with the large apartment building?

Hey @Samantha Ward, great question!

If you are looking to purchase a primary residence, then a DSCR option that Nick mentioned will not apply to you.

My question to you is: are you buying out the lease in full, or are you going to finance the remaining balance? If you are buying it out (no loan) then it will not show up on your DTI. If you are going to be financing the remainder, then that payment will be included in your DTI.

I always tell my clients this: you need to qualify based on 1) income 2) assets and 3) credit. If you can qualify based on all three of these regardless of how you move forward once the auto lease ends, you have nothing to worry about. 

Hope this helps!

 Feel free to reach out to me directly and we can go over specifics.

No google reviews yet they claim to have originated $40M since inception (nothing on website points to when that was). Individual producers (say top 30% producers) will write +$40M in one year.

This is not to say they are bad, but I'm not sure how you can conduct due diligence without seeing social proof.

As many have mentioned, DSCR loans are great options for the scenario you are providing.

However, minimum loan amounts will get factored in. Most lenders won't do loan amounts under $125k, but that isn't to say you can't find one who will.

Loan Officers get paid a percentage of the loan amount, and most loan officers will pass on a deal like this as the pay is a faction of the work they will put in (transparently speaking). @Stacy Raskin has provided a great breakdown, and loos like she might be able to assist. I've heard great things about her.

 Good to know. We're licensed there if you need help. I just want to confirm: you will be purchasing in Ohio and will relocate to live there, correct?

As long as the lender is licensed in that state they can do the FHA loan. I would assume your local credit union is not licensed in the subject property state.

What state are you looking to purchase in?