Looking for Financing

[Benjamin Foullon]

Hi everyone! I found a duplex in the Cleveland area that is listed for 85K and rents come out to around 2k/month. I would like to use a DSCR loan, but I've heard that you can't use DSCR loans at that price point. Is there another loan type that's similar to a DSCR that will work for this price point?

[Brittany Minocchi]

Hey @Benjamin Foullon - you CAN get a DSCR at that price point, but there are fees that are fixed (so they are the same whether it's a $75k loan or a $750k loan) and they can seem high relative to the low loan amount.

The lowest loan any of my lenders will do is $50k as long as the property is worth at least $75k, so it would work for your scenario. Expect to pay about $5k or so in lender fees plus your title fees, prepaids and escrows. You can also look at conventional financing if you can qualify with income docs, employment history and DTI. None of those 3 things are factors with a debt service loan. If you have any other questions feel free to reach out, happy to help!