Want Homestyle/DSCR Renovation Loan

Cincinnati, OhioWantFinancingConventional

Want Homestyle/DSCR Renovation Loan

Member since 2024 · 46 posts · 28 votes

Hello,

I am mid-renovation and am looking for a lender. The home is partially gutted and I plan to have a general contractor take over and finish the project. I am interested in a Homestyle, DSCR, lor another option that would work with low current equity.

Rough numbers:

Renovation amount needed: 150k

Current mortgage: 140k

ARV: 375k

Expected total monthly rents: $5,000

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 678 votes
8mo
Quote from @John Friendas:

Hello,

I am mid-renovation and am looking for a lender. The home is partially gutted and I plan to have a general contractor take over and finish the project. I am interested in a Homestyle, DSCR, lor another option that would work with low current equity.

Rough numbers:

Renovation amount needed: 150k

Current mortgage: 140k

ARV: 375k

Expected total monthly rents: $5,000

Is this and investment property? Sounds like you need a bridge hard money loan to complete the project. Home style is for owner occupied / homesteaded properties. Take a look at the find a lender tab at the top of the page or connect with an experienced broker who can help you shop terms
[email protected]860-538-3672
ProAlpha Capital55 Reviews
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0 Reply
Heath Thomas Jr
Lender · Baltimore MD · Member since 2015 · 202 posts · 67 votes
8mo
My company can do investment single family Homestyle loans. I am not licensed in Ohio though so shoot me a message, and I can connect you with someone that can help.
0 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
8mo
Quote from @John Friendas:

Hello,

I am mid-renovation and am looking for a lender. The home is partially gutted and I plan to have a general contractor take over and finish the project. I am interested in a Homestyle, DSCR, lor another option that would work with low current equity.

Rough numbers:

Renovation amount needed: 150k

Current mortgage: 140k

ARV: 375k

Expected total monthly rents: $5,000

This would not work on a DSCR loan. You will need a bridge loan to finish the rehab and then exit with a DSCR loan.
Most bridge lenders will be limited to 80% of the As is value and 100% of the rehab. The real tricky part is getting the ARV to appraise. Usually they don't, and the borrower will need to cover the difference in the payoff/closing.
You might just be better off selling it to the contractor
[email protected]818-269-7983
LuxePrivate Investments LLC 570 Reviews
Website View Page
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- John Friendas
  OP
  Member since 2024 · 46 posts · 28 votes
  8mo
  Quote from @Erik Estrada:
  
  Quote from @John Friendas:
  
  Hello,
  
  I am mid-renovation and am looking for a lender. The home is partially gutted and I plan to have a general contractor take over and finish the project. I am interested in a Homestyle, DSCR, lor another option that would work with low current equity.
  
  Rough numbers:
  
  Renovation amount needed: 150k
  
  Current mortgage: 140k
  
  ARV: 375k
  
  Expected total monthly rents: $5,000
  
  This would not work on a DSCR loan. You will need a bridge loan to finish the rehab and then exit with a DSCR loan.
  Most bridge lenders will be limited to 80% of the As is value and 100% of the rehab. The real tricky part is getting the ARV to appraise. Usually they don't, and the borrower will need to cover the difference in the payoff/closing.
  You might just be better off selling it to the contractor
  
  Why would it not work on a DSCR loan?
  0 Reply
- Erik EstradaBusiness Member
  Lender · Member since 2022 · 6k+ posts · 1k+ votes
  8mo
  Quote from @John Friendas:
  
  Quote from @Erik Estrada:
  
  Quote from @John Friendas:
  
  Hello,
  
  I am mid-renovation and am looking for a lender. The home is partially gutted and I plan to have a general contractor take over and finish the project. I am interested in a Homestyle, DSCR, lor another option that would work with low current equity.
  
  Rough numbers:
  
  Renovation amount needed: 150k
  
  Current mortgage: 140k
  
  ARV: 375k
  
  Expected total monthly rents: $5,000
  
  This would not work on a DSCR loan. You will need a bridge loan to finish the rehab and then exit with a DSCR loan.
  Most bridge lenders will be limited to 80% of the As is value and 100% of the rehab. The real tricky part is getting the ARV to appraise. Usually they don't, and the borrower will need to cover the difference in the payoff/closing.
  You might just be better off selling it to the contractor
  
  Why would it not work on a DSCR loan?
  
  The property needs to fully rehabbed and turnkey to qualify for a DSCR loan
  [email protected]818-269-7983
  LuxePrivate Investments LLC 570 Reviews
  Website View Page
  0 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
8mo
Alternatively you can try getting a business LOC or Outside JV funding to finish the deal and then refi
[email protected]818-269-7983
LuxePrivate Investments LLC 570 Reviews
Website View Page
0 Reply
Mayo GilfurtPro Member
Real Estate Consultant · Connecticut Ct · Member since 2026 · 156 posts · 34 votes
8mo
Hi John,
With those numbers, this likely won’t qualify for a traditional Homestyle since the property is mid-renovation and partially gutted.
A DSCR renovation or bridge-to-DSCR structure would probably make more sense here.
A couple quick questions so I can point you in the right direction:
– Is the property currently rentable at all?
– Do you have a contractor bid finalized?
– Are you planning to hold as a rental long term?
Feel free to DM me if you'd like and I can outline a structure that could work based on your numbers.
0 Reply
Corinna Negron
Member since 2026 · 129 posts · 21 votes
8mo
Quote from @John Friendas:

Hello,

I am mid-renovation and am looking for a lender. The home is partially gutted and I plan to have a general contractor take over and finish the project. I am interested in a Homestyle, DSCR, lor another option that would work with low current equity.

Rough numbers:

Renovation amount needed: 150k

Current mortgage: 140k

ARV: 375k

Expected total monthly rents: $5,000

This sounds like a situation where a bridge or renovation-to-rental structure may work better than traditional financing given the current stage of construction. I may be able to help review options depending on scope, timeline, and exit strategy. Feel free to send me a private message with property details and renovation status.
0 Reply
Matthew Bernal
Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
7mo
Good news — mid-renovation deals like this are fundable when the ARV supports it, and yours does.

$290K into a $375K ARV is 77% LTV — not a lot of cushion but enough for lenders who underwrite to the finished value rather than current condition. The $5K rent projection also sets up a clean DSCR refi once it's stabilized.

The structure most lenders use here: a short-term rehab or bridge loan to fund the remaining $150K renovation, then refinance into a DSCR loan once the property is rented. Two closes but it keeps you moving without waiting for conventional financing that won't touch a gutted property.

I specialize in this two-step structure and can usually give a quick read on terms fast.

What state is the property in and how far along is the renovation right now?
0 Reply
Michael McCoy
Lender · Hinton, WV · Member since 2026 · 20 posts · 0 votes
7mo
03/17/2026

Dear,John Friendas

As a savvy real estate investor you know the importance of having a ready source of investment capital. It is an ongoing challenge for even the most experienced of investors. This is where I can help.

My name is Michael S. McCoy. I am an Independent Private Money Broker and I have access to the investment capital you want and need. I work directly with multiple lending sources to get you the best deal so you can focus your time and effort on your investments.

I specialize in “fix & flip” funding, and also helping investors leverage their current free and clear or high equity investment property to reinvest through cross collateralization.

Contact me today directly at 4802275033 or via email at [email protected] so I can help you with your investment capital needs. Or you can contact me by going to my website and filling out a contact form @ mandcip.com .

Yours in Success,

Michael S. McCoy

Independent Private Money Broker

PS. I can help with all of your investment capital needs. Just call me today and let’s talk about what we can do together.

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