Lost loan on quad & need help on options

[Emily B.]

My husband lost his job 2 weeks ago and it was his W2 we were using for the loan (30yr at 6.625 percent). We were supposed to close on Tuesday but on Friday afternoon I got a call from my loan officer that the underwriters had found out. (His job officially stops May 28th so we assumed there was no way the they'd know about it.) 

I really don't want to give up the property. It's a quad and there are four tenants paying under market rent. Our plan was to get those tenants out, do some light improvements and then rent two out at the market rate of $1500 a month and turn the other two into MTRs at $2400.

To save the deal, I have a couple of options (I know about): 
1) Do a securities backed loan and then refinance into a conventional mortgage asap when he gets a new job

2) Liquidate our stocks and tap into our cash reserves and pay cash and then do a cash out refinance when rates are better (which I doubt will be anytime soon)

3) Do a DSCR loan at 7.725 percent with 30 percent down and then refinance in 6 months or whenever he gets a job.

What should I do? Are there other options I'm not thinking about?

Thanks so much for the help!

[Nicholas L.]

@Emily B.

standard disclaimer / caution that you shouldn't go through with this if it will strain you financially just to "do a deal." 

i guess here are some miscellaneous thoughts on what you proposed as the options

1. a securities backed loan - is that something backed by your stock portfolio? i don't see how this could possibly have better terms than a DSCR loan.

2. definitely do not do this... cannot possible be worth liquidating your stocks, paying capital gains, etc.

3. it won't make sense to "refinance in 6 months" unless you've significantly improved the value of the property. going from DSCR to conventional just to save 1% won't be worth the closing costs you would pay.

is this on market or off?  is there the opportunity for value add, or are you just buying hoping to be able to increase rents?  it will likely still be valued based on comps in the future so even if you get fantastic MTR rents that won't help you on a refinance, especially if you're paying retail / market on the purchase...

hope this helps you think through it