rural DSCR lenders for NC

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rural DSCR lenders for NC

MJ Richlands
Member since 2021 · 14 posts · 3 votes

been having a tough time finding a DSCR for whats considered "rural" in NC.

credit is good enough.

70% LTV would be just over 100k

dscr ratio over 1 with current tenants in place

ideally no reserve requirements

can anyone help me find a lender that can handle this??

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Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
2y

Hello -

If this is a refinance, most lenders on rural refinances will have a max LTV which is typically 65% for rural refinances. They also will have a minimum loan amount of $100K. It may be difficult to find a lender that can do 70% LTV on a rural refinance and do a loan amount of $100K. If this is an acquisition however, this is executable. What are the scenario specifics here? Also, how "rural" is this? You'd be surprised, there are markets, especially in coastal carolina that have small populations but because they are popular for vacation rentals, and/or have a surplus of sales comps in the area, appraisers will mark the area as "suburban."

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  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    2y

    I've done several deals in the resort-type areas of NE GA (Blue Ridge, Jasper, etc), which are rural. I would really need to drill down more on the deal. I can't guaranty it, but I'll certainly take a peek at it. PM if you would like. 

    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @MJ Richlands:

    been having a tough time finding a DSCR for whats considered "rural" in NC.

    credit is good enough.

    70% LTV would be just over 100k

    dscr ratio over 1 with current tenants in place

    ideally no reserve requirements

    can anyone help me find a lender that can handle this??


    This is possible at a 65% LTV. The minimum value required is $75k and the minimum loan amount is $55k.

    The tough part will be the reserves. Is the property owned free and clear? If so, you may use some of the cash out as reserves. Ideally 3 months liquid is preferred.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    1Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hello -

    If this is a refinance, most lenders on rural refinances will have a max LTV which is typically 65% for rural refinances. They also will have a minimum loan amount of $100K. It may be difficult to find a lender that can do 70% LTV on a rural refinance and do a loan amount of $100K. If this is an acquisition however, this is executable. What are the scenario specifics here? Also, how "rural" is this? You'd be surprised, there are markets, especially in coastal carolina that have small populations but because they are popular for vacation rentals, and/or have a surplus of sales comps in the area, appraisers will mark the area as "suburban."

    1Reply
  • Jesse Holsapple
    Lender · Fountain, CO · Member since 2022 · 124 posts · 32 votes
    2y

    A good rule of thumb depending on the lender is any town under 25,000 in population is often times considered rural. Down the waterfall from there if that doesn't scare them is they will quickly look to see if there are any comps nearby and what "nearby" looks like. 

    1Reply
  • Brandon Croucier
    Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
    2y

    70% LTV on rural properties is doable!

    1Reply
  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi MJ,

    Typically, LTV will be reduced to 65%, and numbers may look different depending on whether there are comps in the area or not. I've seen local lenders sometimes being able to offer higher LTVs.

    310-848-9776
    1Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    can go to 75% but will need 6 months reserves . is it a cashout ? cashout can be used as reserves 

    1Reply
  • MJ Richlands
    OP
    Member since 2021 · 14 posts · 3 votes
    2y
    Quote from @Jacob Sherman:

    can go to 75% but will need 6 months reserves . is it a cashout ? cashout can be used as reserves 


    yes its a cashout and 0 mortgage
    0Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y
    Quote from @MJ Richlands:
    Quote from @Jacob Sherman:

    can go to 75% but will need 6 months reserves . is it a cashout ? cashout can be used as reserves 


    yes its a cashout and 0 mortgage

     Yes this would be something for us . Would love to connect and discuss the scenario 

    0Reply
  • MJ Richlands
    OP
    Member since 2021 · 14 posts · 3 votes
    2y
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done
    0Reply
  • Tom S.
    Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    2y

    @MJ Richlands Sorry to hear.  Just curious, what was the reason why no lender could get it done?

    Here in VT, most areas are considered rural and I've had good luck with my local banks or credit unions that know the subject property (very small towns!)

    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    @MJ Richlands are these acquisitions, rate-term refinances, or cash-out refinances?

    0Reply
  • MJ Richlands
    OP
    Member since 2021 · 14 posts · 3 votes
    2y
    Quote from @Tom S.:

    @MJ Richlands Sorry to hear.  Just curious, what was the reason why no lender could get it done?

    Here in VT, most areas are considered rural and I've had good luck with my local banks or credit unions that know the subject property (very small towns!)


    i guess small sample size of responses from this thread but it was either rural or NC or under 150k loan that ended talks early.  only all loans funding fit the criteria but at the end of the day they missed deadlines and changed numbers when it all boiled down to signing
    0Reply
  • MJ Richlands
    OP
    Member since 2021 · 14 posts · 3 votes
    2y
    Quote from @Zach Edelman:
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    @MJ Richlands are these acquisitions, rate-term refinances, or cash-out refinances?


    i wanted a cashout 1.2 dscr of 70% ltv for a 159k property i own outright with 680+.  i was even ok with 65% ltv but easy street has 150k min loan
    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @MJ Richlands:
    Quote from @Zach Edelman:
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    @MJ Richlands are these acquisitions, rate-term refinances, or cash-out refinances?


    i wanted a cashout 1.2 dscr of 70% ltv for a 159k property i own outright with 680+.  i was even ok with 65% ltv but easy street has 150k min loan

    Hey MJ, 

    Happy to take a look and see if I can get this done. We just closed on a deal in a rural part of WV at 65% LTV. There were obviously some exceptions that needed to be met such as reserves, FICO, experience, and property DSCR, but this was a deal that many lenders turned down including here on BP. It really does matter who you work with.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Erik Estrada:
    Quote from @MJ Richlands:
    Quote from @Zach Edelman:
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    @MJ Richlands are these acquisitions, rate-term refinances, or cash-out refinances?


    i wanted a cashout 1.2 dscr of 70% ltv for a 159k property i own outright with 680+.  i was even ok with 65% ltv but easy street has 150k min loan

    Hey MJ, 

    Happy to take a look and see if I can get this done. We just closed on a deal in a rural part of WV at 65% LTV. There were obviously some exceptions that needed to be met such as reserves, FICO, experience, and property DSCR, but this was a deal that many lenders turned down including here on BP. It really does matter who you work with.


     Loan Amount was also at $78k 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    Forward Lending would not touch this lol. They ask for to many items on a simple DSCR loan so I can imagine your experience with them. You need a DSCR focused lender, that has more flexibility with guidelines. You will probably take a hit with the rate and fees, but it will be a done deal.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    2y
    Quote from @MJ Richlands:
    Quote from @Zach Edelman:
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    @MJ Richlands are these acquisitions, rate-term refinances, or cash-out refinances?


    i wanted a cashout 1.2 dscr of 70% ltv for a 159k property i own outright with 680+.  i was even ok with 65% ltv but easy street has 150k min loan

    I'm not sure who you talked to but we have a minimum loan amount of $100K. 65% of $159K would be $103,350, which would be an eligible loan for us. Sending you a PM. 

    0Reply
  • MJ Richlands
    OP
    Member since 2021 · 14 posts · 3 votes
    2y
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    ultimately brandon did get it done. not sure if it was the lender or broker that pushed things way past deadline but i would use them again if time wasnt an issue
    0Reply
  • MJ Richlands
    OP
    Member since 2021 · 14 posts · 3 votes
    2y
    Quote from @Zach Edelman:
    Quote from @MJ Richlands:
    Quote from @Zach Edelman:
    Quote from @MJ Richlands:
    just a little update.  Not a single lender above could do rural DSCR in NC.  gave brandon with all loans funding 8 weeks and they were just all talk on delivering what they promised.  forwardlendingmtg.com was who they used and couldnt get it done

    @MJ Richlands are these acquisitions, rate-term refinances, or cash-out refinances?


    i wanted a cashout 1.2 dscr of 70% ltv for a 159k property i own outright with 680+.  i was even ok with 65% ltv but easy street has 150k min loan

    I'm not sure who you talked to but we have a minimum loan amount of $100K. 65% of $159K would be $103,350, which would be an eligible loan for us. Sending you a PM. 


     yes you are right its 100k min.  not sure what the roadblock was then

    0Reply
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