Creativity with financing

[Sean Starkey]

Hi all! So my DTI is currently too high to qualify for a conventional loan. If I go DSCR route how much do they give you towards the house ? I know it's based on income the house makes so that could be tricky question. I need to be creative with financing now to continue to scale I feel stuck. I currently have 1 STR near Joshua tree CA

[Stephanie P.]

Quote from @Sean Starkey:

Hi all! So my DTI is currently too high to qualify for a conventional loan. If I go DSCR route how much do they give you towards the house ? I know it's based on income the house makes so that could be tricky question. I need to be creative with financing now to continue to scale I feel stuck. I currently have 1 STR near Joshua tree CA

Either I understood your question differently than everybody else or they misunderstood.

Let me break it down.  You're trying to scale and you own one property new Joshua Tree Ca.  I'm assuming you want to purchase more.

You'll get a max of 80% loan to value on the purchase meaning you'll have to come up with 20% plus closing costs plus 6 months reserves.  Pricing is way better at 75%.

The real crux of the question that is how much will they allow for the rents? DSCR loans typically give you 100% of the rents as compared to 75% with conventional money. That 100% of rents is then put up against the mortgage payment (PITIA) and you get your DSCR percentage. For example a $2000 monthy rent against a $2000 monthly mortgage payment equals 1.0 DSCR.

Hope that helps

Stephanie