Looking for DSCR loan for property in TX with 2 active STRs.

[Derek Stevens]

Looking for a loan program for an 8 acre property in Dripping Springs, TX that is owned outright with two active STRs. Total income for the two units in 2024 will be right at 100k.

Credit score is 719 (business partners is over 800), but we will not qualify for traditional financing due to lack of W2 income. Looking to go more the DSCR route. Both units are stand alone structures but are small (400sqft + large patios).

[Nate Herndon]

@Derek Stevens sounds like a really solid situation on the cash-flow! It's a unique scenario, but I actually just helped a client refinance a Pensacola, Florida AirBNB property that also had two cash-flowing units. One main house, and one bungalow/ADU that was listed separately.

With the solid cash-flow, you would not need to utilize a program that used AirDNA market rents in place of your actual rents. The major considerations are going to be your desired loan-to-value and ensuring that the DSCR refinance program can support a property up to 10 acres.

With your current FICO, the rate range you would be looking at today would vary from 6.50% to 7.25% on a 30-year fixed, depending on what you opted for in regards to LTV in the 55% to 75% range. Lower LTV = lower rate in the case of this cash-out refinance.