Cash Home Pay Off, Financing?

Question

Is it possible for me to be unemployed and not have to buy a house outright? Range is the $400k area, but I'd rather not pay it off 100%. I'd rather pay off 50% or less and snag another rental property. Is this possible? I'm in Colorado and would like to but a rental property in Texas.

Ben Rhodin · Answer

Hi @Rene Martinez! The only suggestion I would have is looking into DSCR lenders. I have a few good contacts, one that is based out of Boulder here in Colorado. They will lend on the property's ability to repay the debt instead of your personal ability like traditional lenders. They do come with slightly higher fees, and interest rates (Around 4-5% nowadays) But they are very quick and easy to work with.

Jessica Tsao · Answer

@Rene Martinez

Yes DSCR loans are available @ up to 75% typically, if you are looking @50% ltv even easier.  It can close 10 days after appraisal.  DSCR loans look at the rental income the property generates and not the personal income.  So unemployed, self employed is no problem.  4.25% rates are what I have done just last week.  It's a bit higher than most conventional loans, but it also doesn't go on your credit report and the loan can go as a LLC for liability protection. I am a big fan of the DSCR loan as I have done one for myself.  Hope that helps

Rene Martinez · Answer

I asked my mortgage contact, she said that dscr is not a type of lending process and that it is still not possible. I've got good credit, great mortgage payment history and should have about 50% to throw as a down payment.