Question on DSCR loans and down payment recoupment strategy

Buying & Selling Real Estate
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Question on DSCR loans and down payment recoupment strategy

Simon Ruiz
Glendora, CA · Member since 2016 · 106 posts · 21 votes

When purchasing a property using this type of loan is there a strategy you can employ to get some of the down payment back before title closing?

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3y

    No, down payment will need to be sourced and any 2nd liens or stuff like that won't be allowed

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  • Greg Downey
    Lender · Springfield, MO · Member since 2015 · 379 posts · 180 votes
    2y

    @Simon Ruiz, the downpayment is the downpayment. The way that you get the downpayment back is by doing the BRRRR strategy.

    Any unique strategy that you would come up with here to get required downpayment funds back to you before closing title, or any other time for that matter would be..... let's say "not allowed", ie- potentially fraudulent. 

    I'm not saying that you are trying to or even want to commit fraud. The only reason that I bring this up is that I see a TON of questions in the forums that are asking "how can I get away with committing fraud?" in various ways. I'm on a personal mission to help people avoid that. 

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