80% DSCR LOan for SFR

[Darian Richardson]

Hey Bp,

I wanted to share my situation with the hope of recommendations or suggestions. I currently have a home in Augusta, Ga listed for sale. Originally this was supposed to be fix and flip, but I am pivoting this to a BRRRR. I am planning to rent out the home refinance, and pull out some of my cash from the deal.

I am looking for a 80% DSCR LTV loan for this deal.

Here is some quick stats of the deal: 

Purchase Date August 11th, 2023 
Purchase Price: 80K
Renovation Cost: 60K
All - In : 140K
Estimated ARV: 180k
Estimated Rental Rate: $1,400 - $1,600
Current Loan Balance: $111,000

My Stats:
- 720 + credit score

Here is a link to the property for more information. 
https://www.zillow.com/homedetails/2730-Antler-Dr-W-Augusta-...

Does anyone know any lenders or small banks in the area that will lend up to that LTV for a cash-out refi?

[Jay Hurst]

Quote from @Timothy Hero:

Quote from @Jay Hurst:

Quote from @Darian Richardson:

Hey Bp,

I wanted to share my situation with the hope of recommendations or suggestions. I currently have a home in Augusta, Ga listed for sale. Originally this was supposed to be fix and flip, but I am pivoting this to a BRRRR. I am planning to rent out the home refinance, and pull out some of my cash from the deal.

I am looking for a 80% DSCR LTV loan for this deal.

Here is some quick stats of the deal: 

Purchase Date August 11th, 2023 
Purchase Price: 80K
Renovation Cost: 60K
All - In : 140K
Estimated ARV: 180k
Estimated Rental Rate: $1,400 - $1,600
Current Loan Balance: $111,000

My Stats:
- 720 + credit score

Here is a link to the property for more information. 
https://www.zillow.com/homedetails/2730-Antler-Dr-W-Augusta-...

Does anyone know any lenders or small banks in the area that will lend up to that LTV for a cash-out refi?

For a cash out most DSCR programs are going to require that the property has not been on the market for the last 6 months, but there are a couple who will allow after the property has been pulled from the market but will likely have a pre-payment penalty.

 I've never heard of this. 243 DSCR closings as a broker with a long list of lenders in the last 36 months. Many of my deals are flippers who struggled to sell and then decide to hold and refinance, and I've never had a lender have an issue with it being on the market recently.

I do have one lender that if it were listed for sale in the last 6 months, the list price is the max value they'd go off of. So if you struggled to sell at $200k and it appraised for $225k, they'd go off of $200k.

 Yeah, again, not about being on the market. For a rate term no problem, it is when it comes to cash out on a lot of programs. NOT all as I mentioned. But, it is very important that borrowers give all the information to a potential lender so the correct program is quoted.