DSCR/Creative lender ideas

[Nic S.]

I will be selling a SFH that will net $90k that will roll into a 1031 for a quadplex. The price of the quad is $525k. Is DSCR loan the most favorable product when I have 17% for down payment? Is there another loan product you like for this situation? I am a W2 employee but trying to avoid conventional loan as DTI may be too high (all RE debt).

[Jason Wray]

When we offer our DSCR loans we have a three options Correspondent, Broker and Portfolio. Only one of these options has points related to the choice of rate. As you know with Correspondent (banked loan) we do not charge points and the PAR rate is derived from margin based on the branch bucket, Banker bucket - similar to your loan officer compensation plan. So when I price it depends on the channel in which the borrower qualifies.

TFSB is a Fully Delegated bank so we have our own Portfolio products with (No Prepays) and the rates are set based on Fico/LTV. I do not need to live price these in Optimal Blue or on a pricing engine so my rates are not effected in this case on a portfolio loan since (None) of my products have prepays. Hopefully that makes sense and when I worked for a "Lender" I was also a little concerned on how they offered products with no overlays and pre-pays, that's why I switched sides.