Looking for DSCR Lender with specific terms

[Dan Nguyen]

Hello!

I have about 20 SFR properties I'm looking to refinance in Phoenix Metro with about $8 mil in debt and I'm looking to do individual DSCR loans for each property.

I'm looking for:

-Ideally 85% LTV (min 80%).

-10-year interest only followed by 20-30 year AM

-Lender must be able to work with individual room rental numbers instead of appraisal rental values.

I can provide lease agreements, proof of rent, canceled checks, etc...

If anyone knows of someone, please let me know!

[Alex Bekeza]

@Dan Nguyen As much as I wish I had a better answer for you I believe @John O'Leary is right. I'm registered to originate for over a dozen of the countries biggest wholesale DSCR lenders and zero of them offer above 80% LTV right now or "renting by the room". It's not even that they would consider long term rents for debt coverage (which wouldn't work at 80% + LTV in PHX anyway with today's rates) but all of the ones I'm aware of have specific guidelines not allowing a rent by the room scenario. Even if you had a master lease scenario which masked the true rent by room situation 99% of DSCR lenders are conservatively relying on long term market rents for debt coverage. Some of the more risk tolerant groups will use 110% of market rent or in the case of STRs maybe Air DNA data with a haircut.

However, it sounds like you've built a respectable track record for this so you may find success at the local level with a LOCAL credit union who will take a more custom tailored approach for you and presumably keep this on their books. My advice would be to offer them the depository relationship by opening a business checking account that you'd use for rent collection. This may make them more interested in playing ball with you. The problem for DSCR loan providers is that nobody would buy these loans on the secondary market based on the characteristics.

Best of luck