DSCR Loan for $465K with 300K cash down-DENIED

[Amy Konopka]

I've been working with a lender who will not lend to me since my original intent was to create another Recovery Residence. Credit score high 700s. Other property cash flows a couple grand/month.

I told them-OK--I'll rent out to a family, totally easy to pivot. 8Br/5 bath house gated community in Murrieta, CA. 

Appraisal already done. Comps out at $4400/month rent. On affordablehousing.net for 5K

Lender makes me sign docs promising its not a recovery residence despite having contracts and guaranteed notes from the County to fill the beds and more than adequately pay them back.  Okey Dokey. 

  I think I can get the sellers to hold off 30 days while I find a more open minded lender.  

1. Is there a certain amount of time I'm granted when it comes to lending? I put my $7650 in EMD down.

2. Is there a DSCR lender out there who isn't afraid of this Housing Model? If so, i'd like to connect because I do plan on scaling.

[Brandon Beardt]

Quote from @Amy Konopka:

I've been working with a lender who will not lend to me since my original intent was to create another Recovery Residence. Credit score high 700s. Other property cash flows a couple grand/month.

I told them-OK--I'll rent out to a family, totally easy to pivot. 8Br/5 bath house gated community in Murrieta, CA. 

Appraisal already done. Comps out at $4400/month rent. On affordablehousing.net for 5K

Lender makes me sign docs promising its not a recovery residence despite having contracts and guaranteed notes from the County to fill the beds and more than adequately pay them back.  Okey Dokey. 

  I think I can get the sellers to hold off 30 days while I find a more open minded lender.  

1. Is there a certain amount of time I'm granted when it comes to lending? I put my $7650 in EMD down.

2. Is there a DSCR lender out there who isn't afraid of this Housing Model? If so, i'd like to connect because I do plan on scaling.

 Hi Amy,

Your contingencies on the purchase contract protect you from events such as this. A loan/financing contingency would give you the opportunity to pull out of the deal if the lender couldn't pull through. That being said, as Caleb mentioned, if the contingency is waived, then you are no longer protected.