Anyone have experience using DSCR loan?

Question

Hello, has any used a debt service coverage ratio loan? Makes sense to me to get the loan based on the value of the deal. Plus, since I don't currently have a full time job, getting qualified for a loan isn't going to happen. Also any referrals for companies you have used for this type of lending? Thanks.

Andrew Postell · Answer

@Michael Mastantuono yes, they are a great loan type.  Sometimes they might be called a "commercial" loan, sometimes they might be called a "portfolio" loan....whatever they call them they are good loans for people who need a different type of loan than Fannie/Freddie (for whatever reason).  Now, there are some differences between lenders. I will say that you should be able to find a 30 year, fixed rate loan of this nature.  I'm saying this because sometimes they are not that structure.  And maybe a different structure is ok too....but just know that a 30 year, fixed does exist.  If you need some tips on how to find good lenders then read this post I wrote for Bigger Pockets HERE.  Thanks for posting!

Jay S. · Answer

Hi Michael. Majority of my loans lately are DSCR loans and most of the are with 15% down payment. DM me know if you have any questions.

Andrew Kiel · Answer

I've personally used Justin Seiler with Lending One out of Florida on about 20 purchases over the last year or so.  They have a solid DSCR product for 30 year fixed rate financing.  Overall, I've been very happy with them and the product.  They don't lend in all states but they definitely do lend in Arizona.  Seems I can't post the contact info but you can easily look them up on a Google search.

Catherine Javier · Answer

Hi! My spouse and I are travel RNs and it was difficult to get a conventional, used US Mortgage. Tom Potter of US Commercial has been very helpful and responds to email immediately. We closed last march 2022, 30yr fixed. Hope this helps. Good luck!

Upen Patel · Answer

@Michael Mastantuono Happy to connect. I specialize in investor financing and can do DSCR loans.

Conner Olsen · Answer

@Michael Mastantuono Call smaller banks in your local market or mortgage brokers. That's where you'll find them. The interest rates on those loans are probably around 8% now.

Catherine Javier · Answer

Hello @Stephanie P. I was trying to tag you but I cant find you. Of course!

Stephanie P. · Answer

Thanks @Catherine Javier  I'll tell him about your kind words.  I know he appreciates the recommendation.  It helps to have great client like you and your spouse!

All the best

Stephanie

Eliott Elias · Answer

There’s are products that require weird qualifications. Like owning a primary home for over a year, make sure you go over the process with your lender and the home rents for more than the mortgage payments

Anyone have experience using DSCR loan?

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