DSCR or Private Loan for Cash out Refi

DSCR or Private Loan for Cash out Refi

Member since 2024 · 1 post · 0 votes

I am planning to convert my primary residence to a three unit rental property where I’ll rent one of the units.

I have a tiny home at the back of my lot and an apartment attached to my house. 

owe $94k on my mortgage. Property appraised for $140k last year. Looking to refi based on the value after rehab based on rental income/cashflow (expecting it to be around $200-210k value) 

Aiming for $150k loan for paying off current mortgage and covering remodel/rehab costs on my property


Is this doable without a significant down payment? I have a 700 credit score also curious how funding works if approved. 

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  • Lender · Springfield, MO · Member since 2023 · 103 posts · 78 votes
    2y

    Hi @Nathan Hurley!

    Unfortunately, a DSCR loan will not be an option. For DSCR they will not do a loan for owner-occupied.

    Your best option would most likely be conventional financing or a private loan. 

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