DSCR Loan with Owner Carried Second

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DSCR Loan with Owner Carried Second

Jerry CalhounPro Member
Rental Property Investor · Pigeon Forge, TN · Member since 2011 · 58 posts · 30 votes

Does anyone have experience or know of someone who was able to obtain a DSCR loan with the seller carrying a second mortgage? I'm having trouble finding a lender who will do this.

Thanks much in advance...

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 676 votes
3y
Quote from @Jerry Calhoun:

Does anyone have experience or know of someone who was able to obtain a DSCR loan with the seller carrying a second mortgage? I'm having trouble finding a lender who will do this.

Thanks much in advance...

Local commercial banks most likely - where is the property located?
[email protected]860-538-3672
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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 676 votes
    3y
    Quote from @Jerry Calhoun:

    Does anyone have experience or know of someone who was able to obtain a DSCR loan with the seller carrying a second mortgage? I'm having trouble finding a lender who will do this.

    Thanks much in advance...

    Local commercial banks most likely - where is the property located?
    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
    WebsiteView Page
    1Reply
  • Shawn Krieger
    Member since 2019 · 151 posts · 20 votes
    3y

    https://www.offermarket.us/loans?ref=kkc61yszews

    0Reply
  • Ryan Muska
    Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
    3y

    What is the amount of the loan needed and what is the purchase price?

    0Reply
  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    3y

    Most lenders will only let you seller carry up to 90% LTV to show that you have some equity in the deal in case it begins to go sour.

    1Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    3y

    We have done that on two small deals with the seller carrying 15% and us putting down 10%.

    0Reply
  • Erik Browning
    Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes
    2y
    Quote from @Logan Singleton:

    Most lenders will only let you seller carry up to 90% LTV to show that you have some equity in the deal in case it begins to go sour.


    Having a hard time finding a lender that will do this for a client. Who did you use? Angel Oak, UWM, Foundation and others all won't allow for CLTV > 80%

    0Reply
  • Todd LibbyBusiness Member
    Investor · Herriman, UT · Member since 2017 · 9 posts · 5 votes
    11mo

    Did anyone every find a lender who will allow a seller carry on a DSCR? I own a mortgage brokerage, and have plenty of lenders who do DSCR's, but none that allow a seller carry, especially if it would make the CLTV (Combined Loan To Value) over their max LTV.

    I would love to know of a specific lender who has allowed this. @Jill F. who did you use?

    [email protected]801-319-3502
    3 Keys Lending4.973 Reviews
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  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    11mo

    We use a small regional bank , Main Street Bank which is headquartered in W Va., which recently merged with Wayne Savings formerly headquartereed in Wooster, OH.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    11mo
    Quote from @Jerry Calhoun:

    Does anyone have experience or know of someone who was able to obtain a DSCR loan with the seller carrying a second mortgage? I'm having trouble finding a lender who will do this.

    Thanks much in advance...


    non bank lenders who are doing DSCR do not allow 2nds on the back end. they want skin in the game

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    0Reply
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