Does this type of lender exist?

6 Replies

Hi everyone, trying to put together my first str deal and have some unique circumstances. Do either one of these types exist out there?

  1. 1. A lender that will qualify "rent-by-room" rental income. House hacking a single family with a year long lease in place, but this seems to be a hurdle for most lenders' guidelines.
  1. 2. An investment lender that will qualify based on the strength of the rental asset AND allow the borrower to put 10% down.

My location: Raleigh, NC

Property location: Sapphire, NC

Is it advised to work with an out of state lender if they give you the terms you're looking for or best to keep it local?

@Will Parks

No, that lender doesn't exist.

10% down on an investment property would only be for acquisition for a property that needs substantial rehab with a tremendous upside ARV.

You're looking at 20% down on a purchase with the guarantor's decent credit and a DSCR of at least 1.0

Investor loans are risky and lenders won't put their money out there because the asset has 10% equity.  If they have to foreclose, that equity is eaten up in lost payments before they even get to lawyer's fees.

Stephanie

@Stephanie P.

It seems you are correct, 10% is too risky for investment lenders. I will most likely be going with VISIO lending, they require 20% and a DSCR >1.2

One of the only I've found that appraise a property on a short term basis (STR friendly).

Thanks for the insight

Originally posted by @Will Parks :

@Stephanie P.

It seems you are correct, 10% is too risky for investment lenders. I will most likely be going with VISIO lending, they require 20% and a DSCR >1.2

One of the only I've found that appraise a property on a short term basis (STR friendly).

Thanks for the insight

Visio is very short term friendly. Ask for John Sperling.  Tell him we sent you.

He is the best

Stephanie