Can I find credit unions here?

Question

I have house free and clear. Finishing my remodeling this month and want to refinance with DSCR loan.

How to find a right credit union?

Jay Hurst · Answer

@Vitalii Lunko

1. Credit unions and retail banks are about the only channel that will not give you a loan in a LLC.

2. Why?  You can use 75% of the lease of the property you just purchased AND 75% of the lease of the next property you would buy. If you are buying anywhere near the price you should be buy9ng vs the rent the 75% will cover the vast majority of the payment. So, if you PITI is 800 and the rent is 1000, you would be able to use 750 to offset the 800 dollar payment. You would only have to carry an additional 50 dollars on your debt to income ratio.

3. Again, a credit union will very likely have no product for you in this case. (Of course the initial likely will not know that and you will get to the underwriter before you are told because most CU/Bank LO's are order takers) on the other hand we do loans with no seasoning at all everyday.

Jay Hurst · Answer

@Vitalii Lunko   A few items to consider here:

1. why a DSCR loan?  Why not a full doc or conventional loan which will have better rate/terms?

2. If you cannot qualify for a full doc/conventional, then DSCR would be the next best option, but why a credit union as they generally do not offer DSCR.

3. Also, how long have you owned the property? That will effect what you can actually borrower on the property due the "seasoning" of the property. If you have owned for less then 12 months it will potentially limit your options on using the improved value.

Most credit union LO's do not see enough deals to help your scenario even if they were to have the products you might need which they likely will not.

Vitalii Lunko · Answer

Can you advice with this option? If you can qualify using income I would suggest using a portfolio cashout refinance or just a conventional refinance.

Vitalii Lunko · Answer

I got recommendations that credit unions give the best rates

Dave Skow · Answer

@Vitalii Lunko- thanks .  Creddit union not needed  ..Ask  friends for lender referals and  check out the local mortgage  compnaies near you . Do you for sure need to use a DSCR loan ? Contact several lenders  - ask for  quotes and  ask if they can assist  with your scenario - then  make a decsion

Jason Wray · Answer

Credit Unions usually do not offer DSCR loans you want to use a NON/QM lender or Bank.  DSCR is not a QM mortgage so most credit unions do not offer that type of debt service loan.

If you can qualify using income I would suggest using a portfolio cashout refinance or just a conventional refinance.

Can I find credit unions here?

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