Rocket Mortgage offering DSCR Loans

[Erik Estrada]

What do you guys think will be the outcome of this? A lot of huge players are entering this space now, so it will be interesting to see how the next 6 months will play out. 

I just priced out a loan and the rate is very good. They also don't have any LLPAs for short term rentals.. 

[Devin Peterson]

Quote from @Erik Estrada:

Quote from @Chris Seveney:

This is very interesting. I know UWM got into the space not to long ago on DSCR. What did you end up getting for the rate?

 I priced out the following 

Loan Amount: $1,440,000

SFR

Borrower Paid Rate: 6.25% 

80 LTV Rate and Term Refi

5 Year PPP

$1095 Underwriting Fee 

Lender Credit: 1.151% 

 Rocket retail has slightly better pricing but they are a wholesale focused lender. Especially with the portal and pathfinder. 

I bet they will be more aggressive with docs and questions along the way DSCR or not. Kind of like a Deephaven or AHL. All of these CDFI lenders still ask for more than necessary on the doc side of things and it pisses borrowers off. Good rates are attractive but so is less red tape.