I am putting together a multi-family deal. I am planning to have part or all of the down payment provided by a private investor, which I will pay interest to, and refinance after a few years, once I add value, and then payoff the investor in full.
My question, is assuming a bank allows a borrowed down payment (I found some that do, and some that don't), should I expect them to include the down payment in the DSCR, since it's borrowed?
This would be a commercial real estate loan.
Sorry for the typo in the title; It appears I can't edit it.
@Christopher B. Yes, assuming the bank is OK with a borrowed down payment, they will count the payment for that additional debt in your DTI or DSCR, whichever applies for the type of loan you're using.
Thank you. Do you think if 10% of the 20% down payment is from a HELOC, and 15% from the private investor/friend, would both sources be a part of DSCR, or just the 15% from the private investor?