Hello BP community. Long time lurker but now am ready to get in the game. I have a couple of questions about dscr loans. What ive gathered- ratio of 1.2 or higher, 25% down, need around 6 months piti left over in bank, good fico score. Anything else? i know these numbers vary from lender to lender. Is this all that is required? i am ready to get into my first property but dont have a great debt to income ratio and some small early mistakes pulled down my credit, also work 1099 making it difficult to get conventional loan. I will be working on fixing all of that for future purchases but i do not want to wait and if a dscr loan can get me in it would be great. Just an example of what im looking for would be a triplex for 375,000. 25% down. piti around 2300 with gross rent at 4300. so around 94k down and 14k 6 months piti. what range interest rate for a 650 fico score? would this deal be a good to go as far as a potential dscr loan.
I specialize in this product and you should be able to get 80% LTV if you have a credit score of 720+ and the property cash flows at least 1.1 DSCR.
For a 650 score, very few DSCR lenders will approve you. I only have one and it would be 75% LTV, around the low to mid 6 range.
thank you!! would adding a partner with a higher fico score suffice?
Yes. Many lenders take the mid score of the two borrowers or some I have go with the highest score on title if there's two.