Rental Property Investor · Las Vegas, NV · Member since 2020 · 3 posts · 0 votes
If you have a down payment can you get approved for a DSCR loan on a duplex? If so, how much down payment should I be ready to put down? Thank you all in advance for your help.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
You can certainly do a commercial loan on a duplex, @Tavaris Council. Rate will be higher, term might be shorter, and you'll have to put down at least 20-25%. Since it's still a residential property, the appraisal will be based on comps, not it's profitability.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
6y
@Tavaris Council Agreed with the above post, I have a few duplexes and they're commercial loans. But they require a personal guarantee and therefore they used my personal credit to qualify. Depends a lot on what you mean by "bad credit". I recall when I applied I had a 30 day late from 5 years ago, and they were able to document and overlook that. I applied for commercial because the place wasn't livable and I needed purchase + rehab financing.
All that said, with the pandemic lenders are generally tightening lending standards. Even with credit cards I read a recent article 1/3 of people have reported lenders lowering credit limits or closing accounts.