Skip to content
Starting Out

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts

Does anyone know of any DSCR lenders that loan under $75,000?

Aaron Lathan
Posted Oct 10 2022, 20:21

Has anyone come across any DSCR lenders willing to fund loans smaller than 75K? There's a bunch of property in my old hometown of Baton Rouge under 75K but I can't seem to find anyone willing to lend that low for investor loans. Any help is greatly appreciated.

User Stats

331
Posts
206
Votes
Lyndsay Zwirlein
  • Lender
206
Votes |
331
Posts
Lyndsay Zwirlein
  • Lender
Replied Oct 11 2022, 05:08

I've searched all over for this on behalf of clients and can't find < $75k either. Would a local commercial banker or business banker be able to help?

User Stats

220
Posts
105
Votes
Kevin Woodard
  • Lender
  • Nationwide
105
Votes |
220
Posts
Kevin Woodard
  • Lender
  • Nationwide
Replied Oct 11 2022, 06:32

Similar to what @Lyndsay Zwirlein recommended, call your local credit unions. They are usually pretty helpful with these types of loans and like to build out the local community. 

Alternatively, if they are undervalued properties that need some TLC you could go that route and force the appreciation.

Hope this helps!

BiggerPockets logo
Meet Investor-Friendly Agents
|
BiggerPockets
Network with top investor-friendly agents who can help you find, analyze, and close your next deal.

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 11 2022, 08:19
Quote from @Lyndsay Zwirlein:

I've searched all over for this on behalf of clients and can't find < $75k either. Would a local commercial banker or business banker be able to help?


 I'll have to give it a shot! Thanks for the response!

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 11 2022, 08:21
Quote from @Kevin Woodard:

Similar to what @Lyndsay Zwirlein recommended, call your local credit unions. They are usually pretty helpful with these types of loans and like to build out the local community. 

Alternatively, if they are undervalued properties that need some TLC you could go that route and force the appreciation.

Hope this helps!


The areas I'm targeting will likely not have the greatest ARV. Definitely great for cash flow only. Will definitely go local to see what I can do. Thanks for the response!

User Stats

342
Posts
187
Votes
Eric Goldman
  • Lender
  • Pennsylvania
187
Votes |
342
Posts
Eric Goldman
  • Lender
  • Pennsylvania
Replied Oct 11 2022, 08:55

local banks are the way to go with the small ones. it will be based of the dscr of the property but also you DTI.

User Stats

118
Posts
54
Votes
Joyce Williams
  • Rental Property Investor
  • New York
54
Votes |
118
Posts
Joyce Williams
  • Rental Property Investor
  • New York
Replied Oct 11 2022, 17:50

@Aaron Lathan……..Try BHG Financial….. ask for Krystian. 315 679 5096…. Let me know how it works out.

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 11 2022, 18:01
Quote from @Joyce Williams:

@Aaron Lathan……..Try BHG Financial….. ask for Krystian. 315 679 5096…. Let me know how it works out.


 I’ll give it a shot. Thanks Joyce. Have you used them before? How was your experience?

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 11 2022, 18:03
Quote from @Eric Goldman:

local banks are the way to go with the small ones. it will be based of the dscr of the property but also you DTI.


 I’ll start calling around. From the 20 or so credit unions in Baton Rouge it looks like most of them advertise 75K limits but I’ll draft up a presentation to just present data. Thanks for the response. 

User Stats

118
Posts
54
Votes
Joyce Williams
  • Rental Property Investor
  • New York
54
Votes |
118
Posts
Joyce Williams
  • Rental Property Investor
  • New York
Replied Oct 11 2022, 18:04

Yes, I’ve used them before. My experience was pretty good.

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 11 2022, 18:11
Quote from @Joyce Williams:

Yes, I’ve used them before. My experience was pretty good.


 Thanks! I’ll give her a call in the morning. 

User Stats

118
Posts
54
Votes
Joyce Williams
  • Rental Property Investor
  • New York
54
Votes |
118
Posts
Joyce Williams
  • Rental Property Investor
  • New York
Replied Oct 11 2022, 18:13

He’s a him. Lol

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 11 2022, 18:46
Quote from @Joyce Williams:

He’s a him. Lol


 🥴 thanks for the correction lol 

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

118
Posts
54
Votes
Joyce Williams
  • Rental Property Investor
  • New York
54
Votes |
118
Posts
Joyce Williams
  • Rental Property Investor
  • New York
Replied Oct 12 2022, 02:39

😆 

User Stats

342
Posts
187
Votes
Eric Goldman
  • Lender
  • Pennsylvania
187
Votes |
342
Posts
Eric Goldman
  • Lender
  • Pennsylvania
Replied Oct 12 2022, 06:05
Quote from @Aaron Lathan:
Quote from @Eric Goldman:

local banks are the way to go with the small ones. it will be based of the dscr of the property but also you DTI.


 I’ll start calling around. From the 20 or so credit unions in Baton Rouge it looks like most of them advertise 75K limits but I’ll draft up a presentation to just present data. Thanks for the response. 

talk to the commercial department... they typically don't have limits.

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 12 2022, 06:12

Thanks for that gem! I appreciate that 🙌🏽

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 12 2022, 06:13
Quote from @Eric Goldman:
Quote from @Aaron Lathan:
Quote from @Eric Goldman:

local banks are the way to go with the small ones. it will be based of the dscr of the property but also you DTI.


 I’ll start calling around. From the 20 or so credit unions in Baton Rouge it looks like most of them advertise 75K limits but I’ll draft up a presentation to just present data. Thanks for the response. 

talk to the commercial department... they typically don't have limits.

Thanks for that gem! I appreciate that 🙌🏽

User Stats

650
Posts
317
Votes
Brittany Minocchi
Pro Member
  • Lender
  • Massillon, OH
317
Votes |
650
Posts
Brittany Minocchi
Pro Member
  • Lender
  • Massillon, OH
Replied Oct 12 2022, 08:30

Haven't used them, but so far I only know of one lender that goes down to $50k in some instances. Most are $75k-$100k+

Barrett Financial Group, L.L.C. Logo

User Stats

22
Posts
5
Votes
Replied Oct 12 2022, 08:53

There is also a way to do it with more than one property at once. You would have to find a lender that allows cross collateralization of the properties on DSCR loans and you would have to do a few at a time.

Just a thought. 

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 13 2022, 06:30
Quote from @Brittany Minocchi:

Haven't used them, but so far I only know of one lender that goes down to $50k in some instances. Most are $75k-$100k+


 👀 what lender? Lol. 

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 13 2022, 06:31
Quote from @Matthew Gaddis:

There is also a way to do it with more than one property at once. You would have to find a lender that allows cross collateralization of the properties on DSCR loans and you would have to do a few at a time.

Just a thought. 

Haven’t thought about that! Thanks for that gem 🙌🏽

User Stats

75
Posts
19
Votes
Jesse Holsapple
  • Lender
  • Missoula, MT
19
Votes |
75
Posts
Jesse Holsapple
  • Lender
  • Missoula, MT
Replied Oct 13 2022, 14:49

We can go as low as 55k funded after dp. At that point though it isn't as much about the value as it is about the livable condition. But we can. Always happy to chat.

User Stats

15
Posts
5
Votes
Aaron Lathan
5
Votes |
15
Posts
Aaron Lathan
Replied Oct 13 2022, 21:58
Quote from @Jesse Holsapple:

We can go as low as 55k funded after dp. At that point though it isn't as much about the value as it is about the livable condition. But we can. Always happy to chat.


 Awesome! Shot you a request.  I'd love to go over specific properties with you to see if it's feasible.  

NREIG  logo
NREIG
|
Sponsored
Customizable insurance coverage with a program that’s easy to use Add, edit, and remove properties from your account any time with no minimum-earned premiums.

User Stats

5
Posts
3
Votes
Replied Jan 11 2023, 15:24
Quote from @Aaron Lathan:
Quote from @Jesse Holsapple:

We can go as low as 55k funded after dp. At that point though it isn't as much about the value as it is about the livable condition. But we can. Always happy to chat.


 Awesome! Shot you a request.  I'd love to go over specific properties with you to see if it's feasible.  


 In the same boat in St Louis.  Were you able to find something? Did Jesse Holsapple work out?

User Stats

5
Posts
3
Votes
Replied Jan 11 2023, 15:26
Quote from @Brittany Minocchi:

Haven't used them, but so far I only know of one lender that goes down to $50k in some instances. Most are $75k-$100k+


 what lender?

User Stats

3
Posts
0
Votes
Rhonda Smith
  • Real Estate Agent
  • Baton Rouge, LA
0
Votes |
3
Posts
Rhonda Smith
  • Real Estate Agent
  • Baton Rouge, LA
Replied Jan 11 2023, 17:53

I can help you with that if you still need someone.