DSCR Loans in Ohio.

Creative Real Estate Financing
5yFollow

DSCR Loans in Ohio.

Elizabeth Martin
Rental Property Investor · Sidney, OH · Member since 2020 · 2 posts · 4 votes

My husband and I just purchased our first rental property. We got a really good deal and we think at the end of it we will have about $80,000 in it total and the ARV will be about $130,000. The only problem is the refinance part. My husband is doing the renovation full time and I am staying home with our kids. The property will rent for $1,200 on the lower end so we were hoping that we could find a lender in Ohio that would be able to lend based off of the property income without having to do any income verification for us. Thanks in advance for any helpful information on possible options.

4Reply
145 views

Most Popular Reply

Michael Swan
Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
4y

Hi @Sasang Doc

This is Swanny.  I use Brian Bruening at Bellweather in Cleveland for all my commercial loans.  I am out of State and live in San Diego, California.  

Have you talked to Brian yet at Bellweather.  I thought I already gave you his contact info.

Swanny

3Reply
See this reply in the discussion

34 Replies

Jump to latestLatest
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Elizabeth Martin:

    My husband and I just purchased our first rental property. We got a really good deal and we think at the end of it we will have about $80,000 in it total and the ARV will be about $130,000. The only problem is the refinance part. My husband is doing the renovation full time and I am staying home with our kids. The property will rent for $1,200 on the lower end so we were hoping that we could find a lender in Ohio that would be able to lend based off of the property income without having to do any income verification for us. Thanks in advance for any helpful information on possible options.

     @Chris Wharton do you have any recommendations for this loan in Ohio?

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Elizabeth Martin

    You’ll need to do a commercial loan/hard money refinance who evaluates the property based on value/income. I know Lima One is an option for a 30 year fixed commercial refinance, with higher rates and more closing costs. You will not find a Fannie Mae low interest 30yr fixed option here.

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • Kevin Romines
    Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    I just PM'd you a referral in your area that can do DSCR loans.

    0Reply
  • Chris WhartonBusiness Member
    Lender · Columbus, OH · Member since 2020 · 84 posts · 72 votes
    5y

    @Elizabeth Martin seasoning could be the challenge. While FNMA and FHLMC allow you to refinance in 6mo most DSCR outlets have a 12mo seasoning period to pull equity.

    [email protected]614-638-9531
    0Reply
  • Elizabeth Martin
    OP
    Rental Property Investor · Sidney, OH · Member since 2020 · 2 posts · 4 votes
    5y

    @Chris Wharton do you know if we have any other options that don't require seasoning of a year?

    0Reply
  • Sasang Doc
    Member since 2021 · 21 posts · 8 votes
    4y

    Hello @Kevin Romines, Would you mind PMing me the information about a DSCR lender in the Ohio area too? We are investing in the Cleveland area and looking to get a commercial loan on our next property. Thanks!

    1Reply
  • Michael Swan
    Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    4y

    Hi @Sasang Doc

    This is Swanny.  I use Brian Bruening at Bellweather in Cleveland for all my commercial loans.  I am out of State and live in San Diego, California.  

    Have you talked to Brian yet at Bellweather.  I thought I already gave you his contact info.

    Swanny

    3Reply
  • Sasang Doc
    Member since 2021 · 21 posts · 8 votes
    4y

    Hello Swanny! Thanks so much for the information and for reaching out. I'll be giving him a call. All the Best!

    1Reply
  • Scott Bartlett
    Investor · Fremont, OH · Member since 2013 · 137 posts · 12 votes
    4y

    @Kevin Romines

    I would be interested in finding a lender for a DSCR loan in NW Ohio or Ohio in general.

    Just learned about them today and I am looking to explore this option more with a lender.

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Scott Bartlett:

    @Kevin Romines

    I would be interested in finding a lender for a DSCR loan in NW Ohio or Ohio in general.

    Just learned about them today and I am looking to explore this option more with a lender.

     @Chris Wharton or @Ashley Cross can answer any questions you have about lending in Ohio

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Chris WhartonBusiness Member
    Lender · Columbus, OH · Member since 2020 · 84 posts · 72 votes
    4y

    @Scott Bartlett I'm available to chat about options today if you like.

    [email protected]614-638-9531
    0Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 533 posts · 461 votes
    4y

    The best DSCR lenders are national. Rates have just increased so it is important to get going as they are projected to increase steadily over the next few months. DSCR lenders have minimum loan amounts and also property values so you will need to find the right lender for your particular project. The rate will be governed by credit score, D.S.C.R. and loan amount. Smaller loans cost more.

    0Reply
  • Adam Feick
    Marysville, OH · Member since 2018 · 39 posts · 41 votes
    4y

    @Elizabeth Martin

    Consider asking in the Dayton area FB groups.  You'll find many recommendations there.  Here is a recent list from other investors.  I have not personally used any, so please do your own research.

    LimaOne,  LendingHome aka kiavi, CorevestFinance, nationwidebcg, daytoncapitalpartners.  

    0Reply
  • Dana Powell
    Member since 2018 · 76 posts · 17 votes
    4y
    Quote from @Steven Goldman:

    The best DSCR lenders are national. Rates have just increased so it is important to get going as they are projected to increase steadily over the next few months. DSCR lenders have minimum loan amounts and also property values so you will need to find the right lender for your particular project. The rate will be governed by credit score, D.S.C.R. and loan amount. Smaller loans cost more.

     @Steven Goldman, I'm being quoted 6% with 3 points on a DSCR 10-year IO/20-year P&I. Last month I settled a similar property at 4% with 3.5 points on a 40 year DSCR with 10 year IO period! Do you think these rate increases are here to stay or will they come down after a few months? I'm just getting into DSCR loans and looks like my timing is well, not good! I'm in DC; I don't think sale prices will soften with these rate increases.

    0Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 533 posts · 461 votes
    4y
    Quote from @Dana Powell:
    Quote from @Steven Goldman:

    The best DSCR lenders are national. Rates have just increased so it is important to get going as they are projected to increase steadily over the next few months. DSCR lenders have minimum loan amounts and also property values so you will need to find the right lender for your particular project. The rate will be governed by credit score, D.S.C.R. and loan amount. Smaller loans cost more.

     @Steven Goldman, I'm being quoted 6% with 3 points on a DSCR 10-year IO/20-year P&I. Last month I settled a similar property at 4% with 3.5 points on a 40 year DSCR with 10 year IO period! Do you think these rate increases are here to stay or will they come down after a few months? I'm just getting into DSCR loans and looks like my timing is well, not good! I'm in DC; I don't think sale prices will soften with these rate increases.



    @Dana Powell: It is safe to predict that debt service coverage rates will continue to increase as the Federal Reserve raises their rates. Rents are also rising to historic levels. If rents continue to rise than higher debt service coverage interest rates will not be as challenging. I have been in real estate since 1983. Periodically rates have risen and the savvy investors have always remained in the market, thrived and survived.

    As you move forward you will find private money to fund your deals.

    The new environment will require more creative thinking. Usually that is the opportunity for the most success. The new rate and price reality will wash out those who are not able to evolve and think on their feet. Those who remain will have a much less crowded field to compete with.  Do not quit work harder and smarter!  

    As an aside, before 2008 many people  adhered to this simple axiom: "Real estate will never lose value because they are not making any more of it". In fact that is not true as many learned the harsh reality in the great recession. I do not believe a great recession is coming. However, what goes up will eventually come down to earth. So position yourself with sufficient capital reserves to withstand a reduction of values, or income, as at  some point it is inevitable. Many of the savviest investors sold their holdings just prior to 2008 and then bought back in after the market decline. Just keep your eyes open and do not be afraid to act when the lights are flashing.

    As Deniro said in Heat: 
    "Don't let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner."   Neil Mcauley









    1Reply
  • Ophira Dagan
    Member since 2017 · 5 posts · 0 votes
    4y
    Quote from @Michael Swan:

    Hi @Sasang Doc

    This is Swanny.  I use Brian Bruening at Bellweather in Cleveland for all my commercial loans.  I am out of State and live in San Diego, California.  

    Have you talked to Brian yet at Bellweather.  I thought I already gave you his contact info.

    Swanny


     I am an out of state investor too (Los Angeles) and would love to get his contact info too please. Many thanks!

    0Reply
  • Ophira Dagan
    Member since 2017 · 5 posts · 0 votes
    4y
    Quote from @Ophira Dagan:
    Quote from @Michael Swan:

    Hi @Sasang Doc

    This is Swanny.  I use Brian Bruening at Bellweather in Cleveland for all my commercial loans.  I am out of State and live in San Diego, California.  

    Have you talked to Brian yet at Bellweather.  I thought I already gave you his contact info.

    Swanny

    @Michael Swan,

     I am an out of state investor too (Los Angeles) and would love to get his contact info too please. Many thanks!

    0Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 533 posts · 461 votes
    4y

    Most D.S.C.R. funding companies are almost nationwide. The list is numerous. Some of them will only require 6 months seasoning, others one year. If your rent is $1,200.00 you will be limited to a loan with a payment of principal interest taxes and insurance less than the $1,200.00. Some companies want a 1.2 percent ratio. Others will go as low as 1.0 but will limit the LTV. Take the monthly taxes and insurance subtract them from the 95 percent of the $1,200.00 and what is left is available to service the debt. (if you are using a property management company that must be subtracted also) So, as an example: Lets calculate taxes and insurance at say $280.00 per month. $1,200.00 - 5 percent or $60.00 is $1,140.00. available for debt service.

    Example of 75 percent cash out at 6.75 ( A lower rate will not increase the LTV but will increase your month on month return)

    1,140.00-280.00= 860.00

    75 percent of 130,000.00=  97,500.00 max cash out.

    97,500.00

    This property can be cashed out on a thirty year fixed at 6.75 your payment would be 632.00.00+280.00=$913.00 

    $1,140.00/912.00= 1.25 debt service coverage ratio

    Thirty year fixed rates are rising to price in the anticipated rise in Federal Reserve rates. Most companies have a 75 percent maximum cash out on refinancing of LTRs.

    The only caveat is the property will have to have a tenant with a one year lease and a one month deposit prior to your application. Hope I did not confuse you.  Good luck. If you have further questions just ask them.

    2Reply
  • Criss Palacios
    Member since 2021 · 2 posts · 1 vote
    4y

    I am also looking for DSCR lenders in the Columbus/Hocking Hills area. Do you have any recommendations? I already own a couple of STRs and I am looking to hopefully expand using DSCR loans.

    0Reply
  • Christine VirataPro Member
    Real Estate Agent · Philadelphia, PA · Member since 2011 · 44 posts · 3 votes
    4y

    HI Elizabeth,

    I am looking to purchase in Ohio. Would you be able to recommend DSCR Lenders?

    Thanks in advance:)

    0Reply
  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    4y

    We can help! I just messaged you.

    [email protected]
    0Reply
  • Princess Vista
    Northeast, OH · Member since 2022 · 19 posts · 4 votes
    4y
    Quote from @Kevin Romines:

    I just PM'd you a referral in your area that can do DSCR loans.


    Hello @Kevin Romines, Would you mind pming me the information about a DSCR lender in the Ohio area too? We are investing in the Northeast Akron-Canton area and looking to get a commercial loan on our next property. Thanks!

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Princess Vista:
    Quote from @Kevin Romines:

    I just PM'd you a referral in your area that can do DSCR loans.


    Hello @Kevin Romines, Would you mind pming me the information about a DSCR lender in the Ohio area too? We are investing in the Northeast Akron-Canton area and looking to get a commercial loan on our next property. Thanks!


     I can send you some

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    4y
    Quote from @Princess Vista:
    Quote from @Kevin Romines:

    I just PM'd you a referral in your area that can do DSCR loans.


    Hello @Kevin Romines, Would you mind pming me the information about a DSCR lender in the Ohio area too? We are investing in the Northeast Akron-Canton area and looking to get a commercial loan on our next property. Thanks!


     Hi Princess, 

    I replied on another one of your posts as well, but wanted to let you know I’m a lender in that area of Ohio and happy to help! 

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
    View Page
    2Reply
  • Criss Palacios
    Member since 2021 · 2 posts · 1 vote
    4y

    Is it possible to also send the information my way? I am looking for DSCR lenders in the Columbus/Hocking Hills area.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free