So I have been having a lot of trouble getting a cash out loan on one of my properties I own outright, and I thought DSCR lending was going to be my saving grace. Well turns out pretty much my entire investing area is considered "rural" even though this specific property is right in the middle of a 30,000 population town and most DSCR lenders will not loan on it because of this. Has anyone ever found a way around this as I really need this to happen if I am going to scale. Conventional lending is not really an option as I am a college student and dont have much W-2 income at this time.
So I have been having a lot of trouble getting a cash out loan on one of my properties I own outright, and I thought DSCR lending was going to be my saving grace. Well turns out pretty much my entire investing area is considered "rural" even though this specific property is right in the middle of a 30,000 population town and most DSCR lenders will not loan on it because of this. Has anyone ever found a way around this as I really need this to happen if I am going to scale. Conventional lending is not really an option as I am a college student and dont have much W-2 income at this time.
A town with a population density of 30K is not rural whether it's a DSCR loan or not. You may have a unique property.
Many DSCR lenders use idcide.com for their rural designations. If a property is in a town of 25K people or more, it's not rural. If it's in a town of less than 25K people, but it's within 25 miles of a town of 100K people, then it's not rural. If it's less than 25K people and it's more than 100K people, then it's rural.
Rural doesn't necessarily preclude a property for many lenders, but it will reduce the ltv (typically to 65%).
Hi! I used to run into this issue a lot. My company now has two specific programs for rural DSCR though! So there are rural DSCR options available and the rates are not higher than non-rural DSCR.
Hi Kristen, I know this is an old post but this is something I am looking at now as we pursue a transaction with seller-financing with a view to refinance later on with a DSCR. Do you guys operate in North Carolina? Thanks
@Alan Santini Yes, we do rural DSCR cash outs in North Carolina. If you DM me the address I can review it to see if it meets the rural guidelines for no LTV hit.
Hi! I used to run into this issue a lot. My company now has two specific programs for rural DSCR though! So there are rural DSCR options available and the rates are not higher than non-rural DSCR.
Hi Kristen, I know this is an old post but this is something I am looking at now as we pursue a transaction with seller-financing with a view to refinance later on with a DSCR. Do you guys operate in North Carolina? Thanks
@Alan Santini Yes, we do rural DSCR cash outs in North Carolina. If you DM me the address I can review it to see if it meets the rural guidelines for no LTV hit.
Hello! I know of firms, such as my own, that can lend on rural properties just at reduced LTV. My firm specifically can do 65% LTV on rural properties across all transaction types.
Hi Zach, I have a property in Sulphur, OK that I’m looking to fix and flip, residential neighborhood, but I’m running into issues with obtaining a DSCR loan due to “rural”. Is this something you can take a look at?
Hello! I know of firms, such as my own, that can lend on rural properties just at reduced LTV. My firm specifically can do 65% LTV on rural properties across all transaction types.
Hi Zach, I have a property in Sulphur, OK that I’m looking to fix and flip, residential neighborhood, but I’m running into issues with obtaining a DSCR loan due to “rural”. Is this something you can take a look at?
@Steve Carey yes this is! Please send me a DM so we can connect!