Hi Kamal! Recommend Denver as we has a number of options

@Denver McClure

This doesnt really exist. House hacking is a primary residence strategy, meaning the property is owner occupied. DSCR loans by definition cannot be used for owner occupancy because they would have to comply with Dodd-Frank rules regarding Ability to Repay, which is exactly what they remove with the DSCR component. DSCR's are commercial loans and every program I have ever seen prohibits owner occupancy - these are only for properties that are exclusively investment properties.

Hey Kamal - DSCR loans are designed for non-owner occupied properties. You will likely need to seek out a different type of loan if you plan on living in the property to any capacity.

Occupying a property that has a DSCR loan would be mortgage fraud and you/the lender would put yourselves at risk for hefty fines and/or jail time - DSCRs don't allow for owner occupancy.

 @Kamal Martin Are you looking to purchase a single family or 2-4 unit property? As said above you would not be able to use DSCR for a property you are moving into, BUT if you buy a 2-4 unit property you can use the rent from the non-owner occupied units to offset the mortgage payment. So, not DSCR, but can have the same effect if you buy the right place.

@Kamal Martin maybe "house hacking" wasn't the right term.... but correct me if i'm wrong, are you referring to renting the property room-by-room?

There are a TON of people who do this and utilize DSCR loans, specifically i see it in college towns, as the property cash-flows beautifully this way.

Unfortunately, DSCR lenders are more concerned with market rent, and even if you were to provide 6 leases for one property, one for each room, adding up to $10k/mo in rental income, they wont underwrite it that way.

I usually recommend my clients give me one lease for the entire property in this scenario, it can have everyone's name on it, and the actual rent amounts... but the lender will go off the LESSER of the two - lease agreement vs market rent from the appraiser. 

That said, you'll get chopped down by the market-rent component. 

There are lenders out there, though, that do not look at DSCR, go negative DSCR, or go no-ratio. If the property is only cash-flow positive w/ room-by-room rents, these may be the better option for your scenario.

Well, I should rephrase my question. I have a primary residence, but it isn't in my name. From my research that is a problem. So, are there any DSCR loans that won't check to see if I have a primary residence in my name?

 I am aware of that.  I should have asked if anyone is aware of a lender who will not be concerned if my primary residence is not in my name.

 So you're saying go conventional?

 I'm aware of that, thanks. Any lenders that wouldn't mind if my name isn't on my primary residence?

 Are you planning on LIVING in the property?  some of you above statements have me confused.  

 Thank you for the clarification! Not all lenders require that you own a primary residence - some will allow you to be a renter or even living rent-free. It varies by lender. 

 Dang, Great info!

Yeah, House hacking caused a lot of confusion... What's that strategy you mentioned called? I was in fact just talking about a DSCR loan without my occupancy. My problem is that my primary residence is not in my name, and so I'd like to know how to get a DSCR loan without a residence in my name.

Im not really clear on what youre asking. It sounds like youre saying that youre looking for a DSCR lender who doesnt require you to own a primary residence because youre currently renting and do not own a primary home. If that's the case, then yes, I know there are a few lenders out there who will lend when youre a renter with a verified lease and not an owner. If that's not what youre asking, then Im not sure what to say.

Keep in mind that the DSCR lender rules around owning a home are meant to be a check on people using DSCR loans to buy a primary residence rather than a rental. I would expect that programs that allow you to not own a home will have an experience requirement, meaning that you have recent experience as a landlord with properties that you own.

 No

 Do you know any lenders of the sort that will work in the south florida area?

 I live with My family. I do not pay rent. When I get the loan, I will not live in the property. I have no experience as a landlord/property manager. Do you know any lenders that work with the South Florida Area?

ok, yeah, you can do that too (get a DSCR loan without owning a primary). MOST DSCR lenders will WANT you to own your primary, but not all of them require it.

there's no name per-say on renting room by room. house hacking kind of refers to buying a house/ owning a house and then renting the rooms out (i do this in my primary). The more official terminology in the mortgage world would be "boarders" not tenants, so their rents would be "boarder income" which most lenders wont let you use for qualifying. But i digress, this paragraph is more related to consumer lending.

DSCR loans are business purpose loans, so they dont usually look at your personal income anyway. But they also typically wont' look at the rents on a room-by-room basis. IMO, this is mainly because if they had to foreclose, no lender wants to mess around with that level of property management.

That doesnt mean you can't do a DSCR loan if you are renting each room out individually. you'll just want to set it up correctly (one lease for example would be helpful), and then make sure the numbers align from a market-rent standpoint. OR, find a lender that is ok going below 1.0 DSCR, OR get creative... maybe a 40 year, or IO options.... or no-ratio/ no DSCR which is out there but higher rates :)

 Thats interesting, thanks for the info.  I'm interested in a couple of multi-unit properties in Miami though. How would you suggest I find a lender?

BP has great tools, I'm pretty sure there's a list of us on here somewhere. Our team is called Investor Property Loan, feel free to check us out. Always happy to help! 

 This will likely be very difficult to find. Im not aware of any lenders who not require either ownership of a primary residence OR a verified lease of a primary residence. Hopefully some of the other lenders here know of a product that they can refer.

Not owning your primary residence is typically not an issue for most lenders. You can get a DSCR rental loan as long as the rents adequately cover the expenses.

 I most commonly hear rent by the room referred to as single-room occupancy (SRO). The GSE's refer to it as boarder income

@Kamal Martin. I’m local to Miami. Feel free to reach out.