Who are currently the best DSCR lenders?
Investor · NJ · Member since 2022 · 154 posts · 224 votes
Who are currently the best DSCR lenders?
Most Popular Reply
Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votesI am biased but I would say we at Easy Street Capital are one of the best DSCR lenders (especially if you are doing BRRRR as we have a great fix and flip product as well). Testimonials here, Google Reviews, our website should back that up as well!
That being said, there are some other great ones out there as well - Boulder Equity Partners (also does small balance commercial), HomeXpress (also does full non-QM suite) and Host Financial (specifically for short term rentals)
Harpoon Capital514 Reviews
26 Replies
- 4yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
I am biased but I would say we at Easy Street Capital are one of the best DSCR lenders (especially if you are doing BRRRR as we have a great fix and flip product as well). Testimonials here, Google Reviews, our website should back that up as well!
That being said, there are some other great ones out there as well - Boulder Equity Partners (also does small balance commercial), HomeXpress (also does full non-QM suite) and Host Financial (specifically for short term rentals)
Harpoon Capital514 Reviews - Lender · Orange County, CA · Member since 2019 · 299 posts · 255 votes4y
Depends on what you mean by best. Lowest rate? Lowest cost? Fastest turn time? Easiest to work with?
Unfortunately you're not likely to find 1 company that fits all of that.
- Investor · NJ · Member since 2022 · 154 posts · 224 votes4y
Quote from @Kevin Luttrell:
Depends on what you mean by best. Lowest rate? Lowest cost? Fastest turn time? Easiest to work with?
Unfortunately you're not likely to find 1 company that fits all of that.
I should have clarified, sorry. I'm looking at all those categories and know nobody will nail all of them. But at least someone that can get close to being really good at all. Lowest rate/cost and ability to close quick are tops but if they are impossible to work with then whats the point? It's like a girl that's a perfect 10 in looks but her horrible attitude or personality drops her to a 5 lol. Nobody wants that.
- Lender · San Diego · Member since 2019 · 10 posts · 13 votes4y
Any with any lending niche, you get to pick 2: 1) great pricing 2) straigtforward/simple underwriting with few overlays, and 3) speed to close.
The more deals that I do, the more I am a 2 + 3 guy, because the rates on these programs tend to fall into a pretty narrow band. That said, I've had a good experience with ACC Mortgage and LendSure. Feel free to DM if you would like a reference for LendeSure as I and not licensed in NJ but I'd be happy to help.
- Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes4y
@Bernard Joseph S. you should shop around and ask these questions to the lenders. If you need specifics, DM me as I see how I can help. As stated above, really depends on what you are looking for. I work with some lenders who have great rates but a pain to get files through. Other lenders are a bit higher in rate but a breeze to get the file done. I haven't found that unicorn lender yet.
- 4yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votesHarpoon Capital514 Reviews
- Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes4y
I like Angel Oak - great service and excellent submission process. The team exhausts every effort to make a deal work and they are very fast. 24 hour turnarounds, well run business.
- Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes4y
@Bernard J. - J Scott said the DSCR lenders are up to 8-10% right now. I remember seeing Facebook ads and being quoted about 2 point and 5% in December 2021 in New Jersey. Do your numbers still work at the 8-10% interest rates? I know in my area of New Jersey (Princeton) a lot of the landlords are still trying to sell deals that are 5-8% cap deals, meaning if you paid cash, that's your percentage of profit after all expenses. So when you put a 2 points and 8% loan on that, it starts to get really thin $$$ wise unless the deal has some good value add in it.
Ie if my annual deal profit is $24,000 (cap 6% on 400k) and I get a $300,000 loan at 8%, my annual deal profit goes to “$0”
- Investor · NJ · Member since 2022 · 154 posts · 224 votes4y
Quote from @Natalie Schanne:
@Bernard J. - J Scott said the DSCR lenders are up to 8-10% right now. I remember seeing Facebook ads and being quoted about 2 point and 5% in December 2021 in New Jersey. Do your numbers still work at the 8-10% interest rates? I know in my area of New Jersey (Princeton) a lot of the landlords are still trying to sell deals that are 5-8% cap deals, meaning if you paid cash, that's your percentage of profit after all expenses. So when you put a 2 points and 8% loan on that, it starts to get really thin $$$ wise unless the deal has some good value add in it.
Ie if my annual deal profit is $24,000 (cap 6% on 400k) and I get a $300,000 loan at 8%, my annual deal profit goes to “$0”
I invest out of state thankfully, but still the numbers are pretty tight everywhere. The deal has to really be on point so I want the lender to be the least of my worries.
- 4yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votesThe rates on DSCR are not that high right now. I gave a quote yesterday at 7.125% charging 2 origination points. Good borrower (800 score) and the LTV was at 75%. Dropping the LTV to 70 took the rate to 6.75%.
Quote from @Natalie Schanne:
@Bernard J. - J Scott said the DSCR lenders are up to 8-10% right now. I remember seeing Facebook ads and being quoted about 2 point and 5% in December 2021 in New Jersey. Do your numbers still work at the 8-10% interest rates? I know in my area of New Jersey (Princeton) a lot of the landlords are still trying to sell deals that are 5-8% cap deals, meaning if you paid cash, that's your percentage of profit after all expenses. So when you put a 2 points and 8% loan on that, it starts to get really thin $$$ wise unless the deal has some good value add in it.
Ie if my annual deal profit is $24,000 (cap 6% on 400k) and I get a $300,000 loan at 8%, my annual deal profit goes to “$0”
- Lender · San Diego · Member since 2019 · 10 posts · 13 votes4y
Quote from @Stephanie P.:
The rates on DSCR are not that high right now. I gave a quote yesterday at 7.125% charging 2 origination points. Good borrower (800 score) and the LTV was at 75%. Dropping the LTV to 70 took the rate to 6.75%.Quote from @Natalie Schanne:
@Bernard J. - J Scott said the DSCR lenders are up to 8-10% right now. I remember seeing Facebook ads and being quoted about 2 point and 5% in December 2021 in New Jersey. Do your numbers still work at the 8-10% interest rates? I know in my area of New Jersey (Princeton) a lot of the landlords are still trying to sell deals that are 5-8% cap deals, meaning if you paid cash, that's your percentage of profit after all expenses. So when you put a 2 points and 8% loan on that, it starts to get really thin $$$ wise unless the deal has some good value add in it.
Ie if my annual deal profit is $24,000 (cap 6% on 400k) and I get a $300,000 loan at 8%, my annual deal profit goes to “$0”
Definitely some serious compression happening between Fannie/Freddie and non-QM rates in general. Used to be double and now it's only about a 20%-30% premium for non-conforming. Interesting time!
- Lender · Austin Texas · Member since 2022 · 319 posts · 156 votes4y
I'm seeing DSCRs start at 6.75% as well.
- 4yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Stephanie P.:
The rates on DSCR are not that high right now. I gave a quote yesterday at 7.125% charging 2 origination points. Good borrower (800 score) and the LTV was at 75%. Dropping the LTV to 70 took the rate to 6.75%.Quote from @Natalie Schanne:
@Bernard J. - J Scott said the DSCR lenders are up to 8-10% right now. I remember seeing Facebook ads and being quoted about 2 point and 5% in December 2021 in New Jersey. Do your numbers still work at the 8-10% interest rates? I know in my area of New Jersey (Princeton) a lot of the landlords are still trying to sell deals that are 5-8% cap deals, meaning if you paid cash, that's your percentage of profit after all expenses. So when you put a 2 points and 8% loan on that, it starts to get really thin $$$ wise unless the deal has some good value add in it.
Ie if my annual deal profit is $24,000 (cap 6% on 400k) and I get a $300,000 loan at 8%, my annual deal profit goes to “$0”
Agreed with this - some of the worse lenders or brokers trying to squeeze will quote 8-10%, but your best options are now typically going to range from the high sixes to the high sevens depending on levers. Earlier in June this was probably low sixes to around 7% but unfortunately last week we were hit with another massive spike.
Harpoon Capital514 Reviews - Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes4y
Depends- do you want short term 12 or 24 month DSCR or 30 year? @Robin Simon Homex does long term but the ratio they use is not as generous as 10 others How much is all your total debt (reserve requirements vary greatly)
- 4yNick BelskyBusiness MemberResidential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
Most other's who've posted have called this out, but different lenders for different metrics of what constitutes "the best".
To top it all off, guidelines and programs are changing constantly. A program that is "best" today, may not be tomorrow. This is a really strong reason why developing a relationship with a broker is key. We have a good pulse on things and keep up with our lenders regularly as things shift around. Prime example is when the market just shifted again last week and many lender began cancelling 80LTV programs and reduced to 75LTV or lower. Obviously, not all did this, but many did. We get regular updates about program changes and options.
The best response I have to your question is with another... what are you trying to accomplish exactly? If you are in a squeeze and need to close quickly, I have a solution for that. If you want the absolute lowest rate possible, I have a solution for that. If you want the lowest loan costs, I have a lender for that too. None are the same.
Cheers!
Belsky Mortgage, LLC527 Reviews - Investor · NJ · Member since 2022 · 154 posts · 224 votes4y
Quote from @Nick Belsky:
Most other's who've posted have called this out, but different lenders for different metrics of what constitutes "the best".
To top it all off, guidelines and programs are changing constantly. A program that is "best" today, may not be tomorrow. This is a really strong reason why developing a relationship with a broker is key. We have a good pulse on things and keep up with our lenders regularly as things shift around. Prime example is when the market just shifted again last week and many lender began cancelling 80LTV programs and reduced to 75LTV or lower. Obviously, not all did this, but many did. We get regular updates about program changes and options.
The best response I have to your question is with another... what are you trying to accomplish exactly? If you are in a squeeze and need to close quickly, I have a solution for that. If you want the absolute lowest rate possible, I have a solution for that. If you want the lowest loan costs, I have a lender for that too. None are the same.
Cheers!
As mentioned in a previous post that you might have missed, I need low rate/low fees and quick closing once property is identified. But that doesn't mean I want to sacrifice ease of doing business with. An all around great experience with a lender is not too much to ask.
- 4yJared RineBusiness MemberLender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
@Bernard Joseph S....I don't know if I'm allowed to toot my own horn, but if I had to 2nd someone here on BP, it'd be @Stephanie P.... I think a lot of the brokers, even the ones posting, have access to all the same lenders, unless you are an actual licensed broker (like myself in CA), and have access to wholesale lenders who only put their money out through brokers and don't have any type of retail channel. I'm still quoting in the 6's even at 80% LTV on purchases, which many can't say, and that's even units with little to no buy-down, depending on situation. Many lenders are repricing at the moment though and some have stopped even going to 80% LTV. It's just knowing where to go - example - 85% on purchases is still available, but very few know where to get it.
Jared Rine United Lending Partners53 Reviews - 4yStephanie P.Pro MemberWashington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
Quote from @Bernard Joseph S.:
Quote from @Nick Belsky:
Most other's who've posted have called this out, but different lenders for different metrics of what constitutes "the best".
To top it all off, guidelines and programs are changing constantly. A program that is "best" today, may not be tomorrow. This is a really strong reason why developing a relationship with a broker is key. We have a good pulse on things and keep up with our lenders regularly as things shift around. Prime example is when the market just shifted again last week and many lender began cancelling 80LTV programs and reduced to 75LTV or lower. Obviously, not all did this, but many did. We get regular updates about program changes and options.
The best response I have to your question is with another... what are you trying to accomplish exactly? If you are in a squeeze and need to close quickly, I have a solution for that. If you want the absolute lowest rate possible, I have a solution for that. If you want the lowest loan costs, I have a lender for that too. None are the same.
Cheers!
As mentioned in a previous post that you might have missed, I need low rate/low fees and quick closing once property is identified. But that doesn't mean I want to sacrifice ease of doing business with. An all around great experience with a lender is not too much to ask.
Lots to unpack here, and I'll try to be brief.
Most DSCR loans will take you about least 21 days to close if you already have your docs like bank statements, ID and entity docs submitted to your broker. The truth is if you're not a cash buyer, you really don't get the luxury of a "quick closing once the property is identified". Everybody should be afforded the time to do their job professionally. Once you identify the property, the lender needs time for due diligence on value and title because it's their money that's on the line. I will say this also, even if you're a cash buyer, a quick close isn't necessarily a smart thing. I had a borrower who purchased a property without having an appraisal done (because he thought the only thing that an appraisal would give him was value and he already knew that from Zillow) and he ended up having to get the property rezoned because it didn't conform to the current zoning.
When you say low rates/fees, do you mean below market rates and fees? if yes, I ask you why would anyone do that? I totally agree with you when you said an "all around great experience with a lender is not too much to ask" and that goes both ways. I've had great experiences with borrowers who understand we as brokers/lenders charge reasonable fees for the services we provide and they provided their documents in a timely fashion so the loans could proceed as scheduled. I've also had borrowers who came to me for a second loan and I've said no because they don't value my service (wanting me to reduce my fees because Joe down the street said he can do it for less) and they're too high maintenance (we were constantly talking them off the ledge for non-issues). It's a two way street and just as investors should ultimately make money on their properties whether they keep them for long term holds or short term flips, everybody deserves to get paid for the services they provide; everybody.Sorry if I was off the mark, but my Mom always told me "Good things are never cheap and cheap things are never good". It applies to just about everything including mortgages.
Stephanie
- Investor · NJ · Member since 2022 · 154 posts · 224 votes4y
Quote from @Stephanie P.:
Quote from @Bernard Joseph S.:
Quote from @Nick Belsky:
Most other's who've posted have called this out, but different lenders for different metrics of what constitutes "the best".
To top it all off, guidelines and programs are changing constantly. A program that is "best" today, may not be tomorrow. This is a really strong reason why developing a relationship with a broker is key. We have a good pulse on things and keep up with our lenders regularly as things shift around. Prime example is when the market just shifted again last week and many lender began cancelling 80LTV programs and reduced to 75LTV or lower. Obviously, not all did this, but many did. We get regular updates about program changes and options.
The best response I have to your question is with another... what are you trying to accomplish exactly? If you are in a squeeze and need to close quickly, I have a solution for that. If you want the absolute lowest rate possible, I have a solution for that. If you want the lowest loan costs, I have a lender for that too. None are the same.
Cheers!
As mentioned in a previous post that you might have missed, I need low rate/low fees and quick closing once property is identified. But that doesn't mean I want to sacrifice ease of doing business with. An all around great experience with a lender is not too much to ask.
Lots to unpack here, and I'll try to be brief.
Most DSCR loans will take you about least 21 days to close if you already have your docs like bank statements, ID and entity docs submitted to your broker. The truth is if you're not a cash buyer, you really don't get the luxury of a "quick closing once the property is identified". Everybody should be afforded the time to do their job professionally. Once you identify the property, the lender needs time for due diligence on value and title because it's their money that's on the line. I will say this also, even if you're a cash buyer, a quick close isn't necessarily a smart thing. I had a borrower who purchased a property without having an appraisal done (because he thought the only thing that an appraisal would give him was value and he already knew that from Zillow) and he ended up having to get the property rezoned because it didn't conform to the current zoning.
When you say low rates/fees, do you mean below market rates and fees? if yes, I ask you why would anyone do that? I totally agree with you when you said an "all around great experience with a lender is not too much to ask" and that goes both ways. I've had great experiences with borrowers who understand we as brokers/lenders charge reasonable fees for the services we provide and they provided their documents in a timely fashion so the loans could proceed as scheduled. I've also had borrowers who came to me for a second loan and I've said no because they don't value my service (wanting me to reduce my fees because Joe down the street said he can do it for less) and they're too high maintenance (we were constantly talking them off the ledge for non-issues). It's a two way street and just as investors should ultimately make money on their properties whether they keep them for long term holds or short term flips, everybody deserves to get paid for the services they provide; everybody.Sorry if I was off the mark, but my Mom always told me "Good things are never cheap and cheap things are never good". It applies to just about everything including mortgages.
Stephanie
Not sure why some of you come off as so defensive. I asked a simple question, clarified when asked what it was I was looking for and my inbox has been non stop with lenders/brokers looking for my business. This is a good thing. Never once did I imply that brokers don't deserve to be paid, I just want a good experience top to bottom. Not sure what got lost in translation lol. Anyway, I've gotten some great quotes but I'm still a free agent if anyone is looking to do business. I'm going to wrap up this process by next week.
- 4yJay S.Pro MemberLender · San Francisco Bay Area · Member since 2019 · 51 posts · 46 votes
David Greene's One Brokerage should be your First and Final stop for DSCR Loans :) :) :)
I can confidently say our Lenders gives amazing rates with 15% down payment and we close these loans very fast.
- Memphis, TN · Member since 2018 · 46 posts · 32 votes4yIf you are asking what is it. If not my apologies.
Quote from @Rudy Sant:
@Robin Simon What I'd DSCR?
Debt Service Coverage Ratio.
https://www.investopedia.com/terms/d/dscr.asp#:~:text=In%20the%20context%20of%20corporate,income%20to%20pay%20its%20debts. - Lender · Member since 2022 · 338 posts · 374 votes4y
Quote from @Rudy Sant:
@Robin Simon What I'd DSCR?
Debt Service Coverage Ratio - essentially using the property cash flow compared to expenses
- Lender · Member since 2022 · 441 posts · 134 votes4y
For DSCR, fix & flip, full Brrrr. Biasly recommend BrrrrLoans, but give as many as you want a call and shop around- RCN, lima1. At the end of the day it's your decision, find someone who is creative, knowledgeable and has good processors.
- 3yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Rudy Sant:
@Robin Simon What I'd DSCR?
More resources:
DSCR Loans: What Are They And How To Get The Best Terms
https://www.biggerpockets.com/...
DSCR Loans: How To Use Pro Strategies To Save More And Make Morehttps://www.biggerpockets.com/...
Multifamily DSCR Loans: A New High-Impact Loan Option For Real Estate Investors?https://www.biggerpockets.com/...
12 Frequently Asked Questions (And Answers) About DSCR Loanshttps://www.biggerpockets.com/...
8 More Commonly Asked Questions and Answers to DSCR Loans
https://www.biggerpockets.com/...Harpoon Capital514 Reviews
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