Any lenders that use STR income?
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Hey Jason,
I believe there are lenders out there that will use STR income to qualify, however it's very far and few between given how new and "risky" it can be in a banks eyes. However, I reached out to a few people and will try to see if I can find one! Please keep me updated with your search as well, because I am curious about this.
#1 Creative Real Estate Financing Contributor
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Quote from @Jason T.:
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Yes - there are very few that will do so, but still available! Check out BiggerPocket's page of featured STR Lenders!: https://www.biggerpockets.com/...
Hey Jason - there are certainly a number of lenders out there that do DSCR loans and will use rental income for you to qualify. Bigger Pockets does have a few they recommend but there are a number of them out there. You could also try looking into The ONE Brokerage and they have a number of connections for a variety of loan types.
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@Jason T. The only ones as far as I am aware are Easy Street Capital (@Robin Simon and @Jack Tulloch)
I'm working on a similar deal with them right now and they're quick and easy to work with
Quote from @Jason T.:
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Hi Jason, I am working with a few STR investors. Here is what I have seen most of the time: As far as using the STR income, most wholesale DSCR lenders want to see that you have at least a one year history of being a STR investor(strong cash reserves can do away with this) and they will not use STR figures in more rural areas. But, Yes you can!
@Jason T.
@Nick Velez does!
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Quote from @Jason T.:
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Yes! We have several programs that can do this. Are you an experienced investor?
- 262.955.5168
- https://barrettfinancial.com/lzwirlein
- [email protected]
Quote from @Jason T.:
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Yes this is possible. They will use AIrDNA to calculate expected rents. It may be harder to find someone that can do 80% (few lenders that can). Happy to connect
I have a loan product that uses AirDNA if no rent data exists. Message me if you want to learn more details.
Quote from @Jason T.:
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Yup, using actual income annualized over 12 months (even if you only have 6) is definitely doable.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Lenders will do DSCR on STR but not a 80%.
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Quote from @Jason T.:
Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!
Jason, hit up @Tyler Solomon- he specializes in DSCRs and can 100% answer your question.
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Most STR lenders can get to 80% on purchases still. If you don't have existing statements (at least 3 months), some lenders will use AirDNA or other projections. Alternatively, if you have an existing STR in the same area, they can use those figures for the new purchases. And lastly, if you don't have statements nor an existing STR in the area, they can use figures from a Property Management company in the area with a similar STR. Feel free to reach out if you need guidance or some recommendations, best of luck!
If there are STR comps to go off of, I have a correspondent channel that I can do them through. I'm in Texas, but we're licensed in multiple states.
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#2 Managing Your Property Contributor
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Many DSR lenders will accept projected rental income based upon area rents.
