DSCR lenders, HML with low or no minimum loan amounts?

Question

Looking to scale my rental portfolio. I have been in the search of lenders with low or no minimums for purchase/ refi. Have found that most DSCR lenders have 75k-100k minimum loan amounts. I live in a cheaper market with a lot of sub-75k properties. Current lender have no minimums but the fees are high and they want 30% down. Looking to possibly connect with a new lender and discuss my options. Thanks!

Alex Breshears · Answer

Hi Skyler! As a private lender myself, this is something we routinely fund in my markets because of this lower asset levels. Depending on what state, I may know a private lender in that market. I am the coauthor for BiggerPockets private lending book, Lend to Live.  I mention this because the book can be a blueprint for you to build your own army of private lenders. I work with an active investor in this type of market to help her build this private lender army to fund all her deals. She routinely gets loans for $20k to $50k for her acquisitions, and then after she has enough, she refin's into a portfolio loan with several properties, and then starts again. There are ways! Feel free to send me a message if you have questions, but in case you are interested in learning more about the private lending process here is a link to the book: https://store.biggerpockets.co...

Eric Miller · Answer

If you know a mortgage broker you can ask them to check in with the lender "UWM". They have no loan amount minimum for DSCR. I know this is an old post but I came across and thought I'd add my 2cents.

Scott Wolf · Answer

@Skyler Shively, as mentioned, it is a tough niche to find a lender for.  Adding your location on the thread might pop up some lenders that can assist.

Brandon Beardt · Answer

Hi Skyler,

Your scenario is not uncommon. Any properties with a values sub $100K are somewhat hard to find financing for. Usually because they're in a rural area and there is lower upside for the lender when they package and sell the loans. I have seen lenders go down to a $50K loan min, but like you said, at an increased cost. I personally have not seen any lenders go lower than that. Best of luck!

Brannon Harnish · Answer

If its PA I can do it, I am a broker that has access to a few DSCR low loan amount investors

Lorenzo Decaria · Answer

Hey Alex, I’m interested in connecting about the possibility for lower loans. Thanks!

Robin Simon · Answer

The fees are always going to be "high" on these because a lot of the costs are fixed, so roughly the same on a $90,000 loan as a $900,000 loan.  Generally best bet is to be able to do significant portfolios at a time and try to bundle at least 8-10 of these in one blanket loan

Benny Anand · Answer

Brian I tried to connect but not sure my request went through properly on BP.  Nonetheless, have a scenario to run by you when you have a chance, please reach out.

DSCR lenders, HML with low or no minimum loan amounts?

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