Range of DSCR rates?
Hello everyone I'm currently looking at properties to rent in Phoenix/Scottsdale area. Looking to use a DSCR loan and I'm curious of what rates are currently available?
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Quote from @Caroline Gerardo:
@Carlos Ptriawan impossible to get a pricing sheet that tells you what every deal will cost. Each piece is a pricing add.
Location, unit type/number/style/mid rise/single story, mortgage middle FICO, Down payment percent, prepay type, 3 points - no points, market rents, property good to perfect condition, rented at close with verification, reserves, vesting is real person or single LLC are the pieces that deliver a rate at a moment in time. Rates good in increments of 15 and 30 days.
high six to low nine is correct for 30 year fixed DSCR
No: syndications, property needs work to rent, ARV, cap rate doesn't matter, no STR rents, no bad credit history such as modification or covid excuse... and a list of outs.
The number of players decreased and their rules continue tightening, though rates are better than a month ago.
Problem is to get into that condition, it has to pass the appraisal phase which is executed by the lender. By that time, it's almost we as investor already locked into particular lender.
If it's FM loan, I could still switch because every lender still follow the FM guidelines.
So with DSCR loan, in theory we can not into the best rate possible that might be available in the open market. The high 6 rate seems like a teaser rate.
No you don't need an appraisal to get exact price. Know exactly what the property category is and communicate that upfront.
Transparent on day one. You know property condition, units, type, class, rents... to be able to make an offer. Photos, permits, a Clue report, walking inside tells a good deal of what exists. Lender asks you about the property, spell it out on the phone before you apply.
DSCR is not going to approve a property that is not inhabitable at closing, for this you need another type of lender.
A teaser rate definition is an Adjustable Rate loan that starts low the first year then increases according to the note.
This is a fixed rate loan. To get to the sixes today you need perfect borrower, large down, perfect property, great location, and points upfront. Are points worthwhile paying, depends on your plans.
