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Creative Real Estate Financing

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Glory Mace
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DSCR in South Carolina

Glory Mace
Posted May 3 2023, 03:49

I'm interested in purchasing a multi family property and would like to shop for a DSCR. Low cost is a must, don't mind the wait and hassle if that's the price for a good rate. Any suggestions on a lender(s)? Thanks

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Devin Peterson
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Devin Peterson
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Replied May 3 2023, 05:15

I can put in touch with some low cost lenders let’s connect 

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Chris Davidson
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Chris Davidson
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  • Boise, ID
Replied May 3 2023, 06:34

@Glory Mace the market determines prices of houses, as well as lending. If you are looking for low cost know your rate is going to be higher, and if you are looking for a lower rate your cost is going to be higher. The only way this isn't true is when someone/ agency subsidizes it.

Best of luck! 

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Brandon Beardt
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Brandon Beardt
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Replied May 3 2023, 08:16
Quote from @Glory Mace:

I'm interested in purchasing a multi family property and would like to shop for a DSCR. Low cost is a must, don't mind the wait and hassle if that's the price for a good rate. Any suggestions on a lender(s)? Thanks

 Hi Glory,

There are tons of DSCR lenders here on BP. Shop around and see what some lenders offer and their costs. Keep in mind, you'll get what you pay for in terms of service. The headache and delays may not be worth the risk of losing your EMD (or your hair) for the purchase transaction if the lender can't perform. Do the research and make sure anyone you're thinking about working with can get the job done. Best of luck!

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Stephanie P.
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Stephanie P.
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Replied May 3 2023, 10:02
Quote from @Glory Mace:

I'm interested in purchasing a multi family property and would like to shop for a DSCR. Low cost is a must, don't mind the wait and hassle if that's the price for a good rate. Any suggestions on a lender(s)? Thanks


You're equating low cost with a good rate. Lending really doesn't work that way.
Your rate depends on your credit score and your loan to value.  

Right now, you've got floor rates in the 6's on a 30 year fixed. If you want good cash flow, you have a 40 year fixed or interest only option. To get to the floor rates, you have to pay points and if you're at the max leverage, you won't get there. Most DSCR lenders charge origination points around 2.

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Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
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Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
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Replied May 3 2023, 18:03
Quote from @Glory Mace:

I'm interested in purchasing a multi family property and would like to shop for a DSCR. Low cost is a must, don't mind the wait and hassle if that's the price for a good rate. Any suggestions on a lender(s)? Thanks


Have you shopped traditional banks/credit unions / agency prior to deciding on DSCR? DSCR I would argue is competitive from a cost standpoint, however the arguably main selling point and advantage for DSCR loans generally is paying a little more to avoid "wait and hassle" - so there might be a little mismatch here

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Erik Estrada
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Erik Estrada
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Replied May 4 2023, 16:09
Quote from @Glory Mace:

I'm interested in purchasing a multi family property and would like to shop for a DSCR. Low cost is a must, don't mind the wait and hassle if that's the price for a good rate. Any suggestions on a lender(s)? Thanks


 Hey Glory, 

If you have excellent FICO, great experience, property DSCRs at 1.00, and are okay with a 5 year Penalty, you can get rates as low as 7.25-7.88% at PAR, (no buy downs). Assuming a 70-75% LTV. If 80%, expect 7.99-8.5% at par.

But the key, is making sure you work with someone that will vet your deal. I've seen it so many times where investors are dragged into terms only to fall out or extend escrow because the deal wasn't properly vetted by the LO/Broker. 

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Adam Bartling
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Adam Bartling
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  • Rosenberg, TX
Replied May 4 2023, 20:24

@Glory Mace 

Most of my investors ask the same, but most of the investors are under 41% DTI and have a 660+FICO therefore qualify for a Fannie Investment Loan! These are cheaper rates which is more cash flow for you.

If you do not qualify for the Full Doc loan, no problem, we put you into a DSCR Loan. But wouldn't you want to have a Loan Originator that treated your money as if is was his money??