Who are currently the best DSCR lenders in 2023?

Question

anyone has worked with any DSCR lenders that they liked? what has been your experience in 2023?

Jack Tulloch · Answer

Kaveh - I agree with the others above. Generally speaking, terms will be in the same ball park but certain lenders will be better suited for certain scenarios. I think process/communication is what separate's the good from the great lenders. Online reviews can be a good place to start to get a general feel for a lenders reputation and consistency.

Establishing a relationship with a lender/broker you can trust is the key.

Timothy Hero · Answer

I've been brokering full time since 2019 and have over 200 closings. I've come to realize, a huge part isn't just the lender, but the loan officer assigned to your file.

Jayson Cain · Answer

Hi @Kaveh Narimani, I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals.

I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.

Devin Peterson · Answer

Hi Kaveh,

It’s really hard to make that statement because there are so many great lenders out there. Also, it depends on what you define as great. I know investors who purely work with one broker or lender, because of the strong relationship they have built with that individual person, I also know a lot of investors who jump from bank to bank just to get the best terms, and then never come back. I find that the best lenders/brokers out there are the ones that care about you as the individual and are willing to cultivate a mutually beneficial relationship that lasts a long time. I hope this helps. Good luck!

Erik Estrada · Answer

You may want to consider a cash out bridge loan to payoff those balances and refinance back into a DSCR loan once the credit is above 680

Aaron Kosek · Answer

Ok so what if you are someone in need of a DSCR loan for a single family property and your Fico score just took a pretty big hit bringing it down to 643 after being above 730+ every month for the last 2 years the credit history shows. Reason for this drop is just simply high utilization due to a last minute shortage of funds for closing on another property just recently...This person will be able to simply pay down this high utilization that had now crushed his score but in the meantime he still has 3 other properties under contract and he is concerned about this single family deal (other 2 are multi and is rehab). Most DSCR lenders that I know of require around a 680 score to qualify, is there any Lenders that work with borrowers in situations like this? Has experience, not interested in asset based loan for this specific property at least. Any insight would greatly be appreciated..Thankyou

Nick Giulioni · Answer

Depends on where you are investing. I generally like local options!

Zach Edelman · Answer

BP has a list of preferred DSCR lenders which I would definitely recommend checking out!

https://www.biggerpockets.com/loans

Stefano Grottoli · Answer

Any lenders out there that would do a minimum of $50k for DSCR? Market I’m looking to buy is super cheap and the minimum I was able to get with my 2 go to lenders was $75k.

Greg Huegel · Answer

To echo a lot of previous comments, regardless of the lender you are sourcing financing through, the experience aspect truly depends on the loan officer that you are working with directly.

Lima One has extremely flexible DSCR loan options, which can be tailored to each investor's needs and investment strategy.

@Timothy Hero - Thank you for commenting on your experience with Lima One. To clarify, we do provide both short-term FNF and long-term DSCR financing to first time investors. After coordinating internally, the reason we could not finance the portfolio purchase, you are referring to, is due to the borrower being a first time homebuyer. To qualify for our FNF or DSCR loan options, borrowers can be a first time investor, but cannot be a first time homebuyer.

The Lima One loan programs that require real estate investment experience are our FNF portfolios of 3+ properties, ground up New Construction, and Multifamily bridge.

To be clear, I am not defending the timeline as to when this information was relayed. It should have been caught earlier in the process, and is not a true reflection of how we conduct business here at Lima One.

Feel free to reach out if anyone has any other questions or comments!

Who are currently the best DSCR lenders in 2023?

Who are currently the best DSCR lenders in 2023?

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