Broker DSCR question

[Trever Good]

I’m looking to get into my first LTR property, a duplex in PA. This is my first experience with financing other than my primary residence in 2008, and I’ve been in touch with a broker regarding a DSCR loan.

They have presented the following (in part):

Any DSCR loan in PA for a multi family “isn’t allowed” to have any PPP, unless it meets their minimum threshold of $312k for the loan. This seems like an arbitrary (and excessive) number. The rate I’ve been shown is for a loan under $312k, with no PPP, is 7.875%. This rate differs considerably from what I was expecting, but given my inexperience I can be sure I’ve been comparing apples to apples in my research.

This being my first go around, I was hoping to bounce this off of the forums to see if this sounded legit, or am I missing something?

FICO of 740

I have no reason to distrust the broker, he seems like a good dude. I trust, but want to verify.

Any advice is appreciated!

[Mike Kirby]

Quote from @Trever Good:

I’m looking to get into my first LTR property, a duplex in PA. This is my first experience with financing other than my primary residence in 2008, and I’ve been in touch with a broker regarding a DSCR loan.

They have presented the following (in part):

Any DSCR loan in PA for a multi family “isn’t allowed” to have any PPP, unless it meets their minimum threshold of $312k for the loan. This seems like an arbitrary (and excessive) number. The rate I’ve been shown is for a loan under $312k, with no PPP, is 7.875%. This rate differs considerably from what I was expecting, but given my inexperience I can be sure I’ve been comparing apples to apples in my research.

This being my first go around, I was hoping to bounce this off of the forums to see if this sounded legit, or am I missing something?

FICO of 740

I have no reason to distrust the broker, he seems like a good dude. I trust, but want to verify.

Any advice is appreciated!

Why are using DSCR already? You should be using conventional loans until you can’t anymore.