I am having trouble finding a good DSCR lender

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I am having trouble finding a good DSCR lender

Sean Gammons
Member since 2022 · 16 posts · 11 votes

Hi yell, I have been using the biggerpockets lender finder and haven't had much luck if anyone can recommend a good DSCR lender with rates below 7% and reasonable fees I would appreciate it because I am not having any luck thank you so much!

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Patrick Roberts
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
11mo

Not trying to be mean, but "competitive terms and pricing" is boilerplate language. That can mean anything. I dont know what your expectations are, but for reference, any DSCR loan is going to have anywhere from $1,500 to $2,500 in fees, and there will likely be some combination of points along with that depending on the prepayment penalty and loan specs. The rate and points will also be highly sensitive to the LTV, credit score, DSC ratio, loan purpose, loan size, and property type.

The majority of quality lenders are all going to have terms that are in the same ballpark. My recommendation would be to focus on identifying 2-3 lenders or brokers who are reputable, knowledgeable, and responsive. Complete an app and get quotes from all three. If the quotes are pretty similar, then this is where your loan is ultimately going to fall. There are quite a few reputable lenders (but not all) who are active on BP, which you said you've checked into. If youve already done this and feel that everything youre seeing is too expensive, then your expectations are out of market and unrealistic.

Beware the cheap, cut-rate lenders that offer terms that are far below market. If you go down this road, youre asking for trouble. There's good, fast, and cheap - you can have any two of the three. If youre looking for all three, youre looking for a unicorn.

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  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    11mo

    What do you mean by a "good" lender? What exactly are you looking for?

    0Reply
  • Sean Gammons
    OP
    Member since 2022 · 16 posts · 11 votes
    11mo

    @Patrick Roberts 
    Hi Patrick! I am looking for a lender that has competitive terms and pricing with good communication. 

    Thank you.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    11mo
    Quote from @Sean Gammons:

    Hi yell, I have been using the biggerpockets lender finder and haven't had much luck if anyone can recommend a good DSCR lender with rates below 7% and reasonable fees I would appreciate it because I am not having any luck thank you so much!


     Hey Sean, 

    What would you consider reasonable fees? and what is the size of the loan? 

    I am surprised you haven't found a lender on the finder. What kind of feedback/pricing are you getting? 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
    • Patrick Roberts
      Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
      11mo
      Quote from @Erik Estrada:
      Quote from @Sean Gammons:

      Hi yell, I have been using the biggerpockets lender finder and haven't had much luck if anyone can recommend a good DSCR lender with rates below 7% and reasonable fees I would appreciate it because I am not having any luck thank you so much!


       Hey Sean, 

      What would you consider reasonable fees? and what is the size of the loan? 

      I am surprised you haven't found a lender on the finder. What kind of feedback/pricing are you getting? 


       This was the red flag I picked up on as well. 

      1Reply
    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      11mo
      Quote from @Patrick Roberts:
      Quote from @Erik Estrada:
      Quote from @Sean Gammons:

      Hi yell, I have been using the biggerpockets lender finder and haven't had much luck if anyone can recommend a good DSCR lender with rates below 7% and reasonable fees I would appreciate it because I am not having any luck thank you so much!


       Hey Sean, 

      What would you consider reasonable fees? and what is the size of the loan? 

      I am surprised you haven't found a lender on the finder. What kind of feedback/pricing are you getting? 


       This was the red flag I picked up on as well. 


       Yea I am super surprised on him not finding a lender on the finder. There are hundreds of them with great reviews. 

      [email protected]818-269-7983
      LuxePrivate Investments LLC 572 Reviews
      WebsiteView Page
      0Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    11mo

    Not trying to be mean, but "competitive terms and pricing" is boilerplate language. That can mean anything. I dont know what your expectations are, but for reference, any DSCR loan is going to have anywhere from $1,500 to $2,500 in fees, and there will likely be some combination of points along with that depending on the prepayment penalty and loan specs. The rate and points will also be highly sensitive to the LTV, credit score, DSC ratio, loan purpose, loan size, and property type.

    The majority of quality lenders are all going to have terms that are in the same ballpark. My recommendation would be to focus on identifying 2-3 lenders or brokers who are reputable, knowledgeable, and responsive. Complete an app and get quotes from all three. If the quotes are pretty similar, then this is where your loan is ultimately going to fall. There are quite a few reputable lenders (but not all) who are active on BP, which you said you've checked into. If youve already done this and feel that everything youre seeing is too expensive, then your expectations are out of market and unrealistic.

    Beware the cheap, cut-rate lenders that offer terms that are far below market. If you go down this road, youre asking for trouble. There's good, fast, and cheap - you can have any two of the three. If youre looking for all three, youre looking for a unicorn.

    3Reply
    • Logan Lambert
      Lender · Kingsville, MD · Member since 2023 · 103 posts · 35 votes
      10mo
      Quote from @Patrick Roberts:

      Not trying to be mean, but "competitive terms and pricing" is boilerplate language. That can mean anything. I dont know what your expectations are, but for reference, any DSCR loan is going to have anywhere from $1,500 to $2,500 in fees, and there will likely be some combination of points along with that depending on the prepayment penalty and loan specs. The rate and points will also be highly sensitive to the LTV, credit score, DSC ratio, loan purpose, loan size, and property type.

      The majority of quality lenders are all going to have terms that are in the same ballpark. My recommendation would be to focus on identifying 2-3 lenders or brokers who are reputable, knowledgeable, and responsive. Complete an app and get quotes from all three. If the quotes are pretty similar, then this is where your loan is ultimately going to fall. There are quite a few reputable lenders (but not all) who are active on BP, which you said you've checked into. If youve already done this and feel that everything youre seeing is too expensive, then your expectations are out of market and unrealistic.

      Beware the cheap, cut-rate lenders that offer terms that are far below market. If you go down this road, youre asking for trouble. There's good, fast, and cheap - you can have any two of the three. If youre looking for all three, youre looking for a unicorn.


       Perfect answer!

      0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 663 posts · 226 votes
    11mo

    Hey Sean!

    Definitely a lot of solid lenders on here, but hope you'll find something. A lot of investors of course looking for the same thing. On our side we are both a direct lender and broker for DSCR to find which rates/fees might be most beneficial for your situation, when we handle things directly for you no application, origination, or broker fees of any kind and then Underwriter, processor, assistant all in the same office to streamline the process.

    If it's helpful to look at some other options feel free to reach out.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group548 Reviews
    WebsiteView Page
    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    11mo

    There are a half dozen who posted in this form who are all very good at what they do and communicate well. Anyone of us could get you quotes. Things that impact these types of loans are your credit score, the loan to value, the prepayment penalty, and DSCR ratio as others mention

    if any of those is off it will impact it greatly

    7e investments53 Reviews
    WebsiteView Page
    0Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    11mo
    Quote from @Sean Gammons:

    Hi yell, I have been using the biggerpockets lender finder and haven't had much luck if anyone can recommend a good DSCR lender with rates below 7% and reasonable fees I would appreciate it because I am not having any luck thank you so much!


     Hi Sean,


    Rates will vary by several factors on DSCR including credit score, ltv, loan size, and prepayment penalty to name a few. If you can post more details on the project, many of us can help weigh in!

    0Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    10mo

    There are good DSCR options out there. It will be dependent on your LTV, credit, how long is the prepayment penalty is, etc.

    Also, everyone gets paid for their work so either you will pay the lender or mortgage broker a fee at closing also called buyer paid compensation (BPC) or you will pay with a higher rate for your credit profile where the rate is higher from the base rate for your credit profile. That is called lender paid  compensation (LPC). 

    Lender paid compensation is more common for conventional loans but I've seen it as an option for DSCR loans recently.

    Happy to connect to discuss further. 

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    0Reply
  • Bernadeau C.Pro Member
    Rental Property Investor · Orlando, FL · Member since 2014 · 540 posts · 230 votes
    10mo

    I can help with financing. Let's connect. I will send you a DM.

    0Reply
  • Antonio Grzeca
    Lender · CA · Member since 2025 · 18 posts · 3 votes
    10mo

    I sent you 2 DSCR programs I'm offering right now with a 1 day cash-out, first time investors, and no interest options available. Look forward to connecting!

    0Reply
  • Benjamin Lancaster
    Lender · Austin, TX · Member since 2022 · 24 posts · 4 votes
    10mo
    Quote from @Sean Gammons:

    Hi yell, I have been using the biggerpockets lender finder and haven't had much luck if anyone can recommend a good DSCR lender with rates below 7% and reasonable fees I would appreciate it because I am not having any luck thank you so much!


    Sent you a DM, with our DSCR services our floor rate is 5.5%

    0Reply
  • Drago Stanimirovic
    New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes
    9mo

    Hey Sean,

    Sub-7% DSCR rates are possible, but usually with lower LTV, strong credit, and solid property performance. If you're hitting walls, it might be due to how the deals are structured or the lenders you're targeting. Some advertise low rates but hide fees or stiff prepay penalties.

    Feel free to reach out if you want a second look at any offers.

    Best,
    Drago

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    9mo

    @Sean Gammons I would say that I have access to some of the best DSCR lenders with the lowest rates and closing costs in my opinion, and I have compared a lot of DSCR loan terms with a ton of investors. If you would like some comparisons to see if you can get a better deal, feel free to reach out. Contact info is below.

    [email protected]619-456-8311
    Helm Mortgage Corp.5125 Reviews
    WebsiteView Page
    0Reply
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