DSCR Loans/ Hard Money Lenders

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DSCR Loans/ Hard Money Lenders

Rental Property Investor · Fallbrook, CA (San Diego area) · Member since 2019 · 98 posts · 29 votes

Hello,

I have been reading through the Bigger Pockets Forums to hunt for your good and bad experiences with DSCR Lenders. We are looking at a 30-year fixed for a Single Family STR , but we are open to suggestions re: ARMs, Interest Only, etc.

Feedback regarding your personal experiences rates changing; hidden fees; closing on time; professionalism of the loan officer you worked with, etc., are all appreciated, for the below listed lenders, and we are open to new suggestions for lenders not listed.

(1) Host Financial

(2) Mortgage Shop

(3) Lending Deck

Thanks!

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Jeff Langley

Member since 2021 · 167 posts · 141 votes

I have multiple DSCR loans and none are from any of those companies you mentioned. I'm a very direct but also analytical person so i be sure to ask all the tough questions up front because i don't like bad surprises. I always ask about processing fees, prime rates, closing schedules, and most certainly requesting a baseline loan estimate. If they can't or won't answer those questions and are unwilling to give you a loan estimate without pulling a credit check, i walk away. I don't have time for games and dislike when loan representatives act like they can't ball park me a loan estimate. As the consumer, we should be well prepared with your personal info(credit scores, dti, taxes, insurance, etc) to get a baseline estimate. It goes both ways.

With that said, i love my DSCR loans outside of slightly higher closing cost. The process is seamless compared to typical government loans. Personally, i always do 30 yr fixed loans, i don't mess with ARM's. I want to know my payment is fixed for the foreseeable future and can adjust accordingly if needed.

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Jeff Langley
Member since 2021 · 167 posts · 141 votes
4y
I have multiple DSCR loans and none are from any of those companies you mentioned. I'm a very direct but also analytical person so i be sure to ask all the tough questions up front because i don't like bad surprises. I always ask about processing fees, prime rates, closing schedules, and most certainly requesting a baseline loan estimate. If they can't or won't answer those questions and are unwilling to give you a loan estimate without pulling a credit check, i walk away. I don't have time for games and dislike when loan representatives act like they can't ball park me a loan estimate. As the consumer, we should be well prepared with your personal info(credit scores, dti, taxes, insurance, etc) to get a baseline estimate. It goes both ways.

With that said, i love my DSCR loans outside of slightly higher closing cost. The process is seamless compared to typical government loans. Personally, i always do 30 yr fixed loans, i don't mess with ARM's. I want to know my payment is fixed for the foreseeable future and can adjust accordingly if needed.
8 Reply
Heather Hall
OP
Rental Property Investor · Fallbrook, CA (San Diego area) · Member since 2019 · 98 posts · 29 votes
4y
@Jeff Langley - thanks so much; this is great feedback. I will message you privately to ask some follow-ups about your lenders with which you have had good experiences.
0 Reply
Bob ReinhardBusiness Member
Lender · Patterson, NY · Member since 2017 · 488 posts · 186 votes
4y
By direct message I have sent you some info in the event your solution has not yet been found.
Much Success !
Bob
[email protected]914-861-5501
0 Reply
Shane Ward
Albrightsville, PA · Member since 2018 · 118 posts · 79 votes
4y
Quote from @Jeff Langley:

I have multiple DSCR loans and none are from any of those companies you mentioned. I'm a very direct but also analytical person so i be sure to ask all the tough questions up front because i don't like bad surprises. I always ask about processing fees, prime rates, closing schedules, and most certainly requesting a baseline loan estimate. If they can't or won't answer those questions and are unwilling to give you a loan estimate without pulling a credit check, i walk away. I don't have time for games and dislike when loan representatives act like they can't ball park me a loan estimate. As the consumer, we should be well prepared with your personal info(credit scores, dti, taxes, insurance, etc) to get a baseline estimate. It goes both ways.

With that said, i love my DSCR loans outside of slightly higher closing cost. The process is seamless compared to typical government loans. Personally, i always do 30 yr fixed loans, i don't mess with ARM's. I want to know my payment is fixed for the foreseeable future and can adjust accordingly if needed.
What lenders have you used? I ask all the same questions and have never been told the truth, I get answers they just never seem to be the truth. I’ve used Visio and Lendsimpli. Visio was beyond terrible and Lendsimpli just had more and higher fees than they told me up front.
1 Reply
Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
4y
@Heather Hall, I like how quickly and easily these DSCR lenders can close. I don't like the higher rate and fees. However, I can actually buy houses and get it done fast, which is what I need at this stage of the game. These lenders have done mortgages on STRs: Visio, Host Financial, American Heritage, LendingOne and RCN. I have used Visio, LendingOne and RCN.
2 Reply
Heather Hall
OP
Rental Property Investor · Fallbrook, CA (San Diego area) · Member since 2019 · 98 posts · 29 votes
4y
@Kerry Baird : Thanks. I will send you a message to ask about your experiences.
0 Reply
Shane Ward
Albrightsville, PA · Member since 2018 · 118 posts · 79 votes
4y
Quote from @Kerry Baird:

@Heather Hall, I like how quickly and easily these DSCR lenders can close. I don't like the higher rate and fees. However, I can actually buy houses and get it done fast, which is what I need at this stage of the game. These lenders have done mortgages on STRs: Visio, Host Financial, American Heritage, LendingOne and RCN. I have used Visio, LendingOne and RCN.
Which of those did you have the best experience with? Visio was a nightmare and super expensive. They didn’t offer the DCRS loan when I did my three LTR refi’s though, hopefully they have gotten better.
1 Reply
Shane Ward
Albrightsville, PA · Member since 2018 · 118 posts · 79 votes
4y
Quote from @Kerry Baird:

@Heather Hall, I like how quickly and easily these DSCR lenders can close. I don't like the higher rate and fees. However, I can actually buy houses and get it done fast, which is what I need at this stage of the game. These lenders have done mortgages on STRs: Visio, Host Financial, American Heritage, LendingOne and RCN. I have used Visio, LendingOne and RCN.
Which of those did you have the best experience with? Visio was a nightmare and super expensive. They didn’t offer the DCRS loan when I did my three LTR refi’s though, hopefully they have gotten better.
1 Reply
Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
4y
That was my experience with Visio, too. @Shane Ward
1 Reply
River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
4y
Hi Heather-
I am with a private nationwide lender that specializes in DSCR loans and would love to connect. We have a short application process and close quick. Also, check out out website easystreetcap.com to see testimonies from clients about their experience with us!
[email protected]
2 Reply
Matt Darak
Rental Property Investor · Bradenton, FL · Member since 2019 · 19 posts · 7 votes
3y
@Jeff Langley sounds like you're pretty happy with your DSCR lenders….which ones have you used?
Matt Darak
0 Reply
Alex BekezaBusiness Member
Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
@Heather Hall

Right now, our secret sauce is a new appraisal form type that only a few AMCs offer and very few lenders will consider or be aware of. This new form allows us to order a 1007 rent schedule with SHORT TERM RENTAL COMPS. Traditionally, DSCR loans that allowed STR have always wanted DSCR to be calculated on long term rental rates OR 12 months of actual performance or some heavily hair cutted version of Air DNA and all of these products would price gauge on rate. This allows us to by pass both of those issues and today's rates sit in the 7s for 30 year fixed (not a far cry from Fannie/Freddie at the moment). We do all of this with NO TAX RETURNS and no DTI calculations whatsoever. It's a very business purpose, subject property based approach.

[email protected]818-606-8823
Investor Property Loan5306 Reviews
Website View Page
1 Reply
Daniel Christopher Ramirez
Lender · Miami, FL · Member since 2023 · 1 post · 5 votes
3y
Quote from @Heather Hall:

Hello,
I have been reading through the Bigger Pockets Forums to hunt for your good and bad experiences with DSCR Lenders. We are looking at a 30-year fixed for a Single Family STR , but we are open to suggestions re: ARMs, Interest Only, etc.
Feedback regarding your personal experiences rates changing; hidden fees; closing on time; professionalism of the loan officer you worked with, etc., are all appreciated, for the below listed lenders, and we are open to new suggestions for lenders not listed.
(1) Host Financial

(2) Mortgage Shop
(3) Lending Deck
Thanks!

Hey Heather! I am one of the co-founder of Host that you mentioned. We like to give very detailed quotes up front explaining known fees such as origination fees, any underwriting or processings fees, and estimates on variable fees such as escrow fees or title fees. Arms, IO, fixed are all options presented and quotes can be adjust based on what your goal is such as utilizing buy down points for a lower rate, adjusting the prepay penalty to get the rate up or down. We collect all the necessary deal information upfront to give you the most accurate quote possible so nothing changes after the loan submission for underwriting to start. We quote based on the estimated FICO score you provide so if done right with accurately submitted numbers (property income, expenses, taxes) then the actual credit pull on loan app is the only way a rate would differ from the quote and term that is rate locked for underwriting or if the loan app is submitted in a large enough time window in which rates could have changed (we're in a dynamic rate environment so by the day and the week rates fluctuate).

Rate locks are an option so you know what is issued in the term sheet is what you can expect the rate to stay for a specified period of time until you close. You definitely need to be weary of bait and switch lenders that quote you a rate but don't mention a rate lock. The reason being is they can quote you a low rate (too good to be true usually) and then half way through the process or even worst at closing the rate is subject to what it is that day and then they excuse themselves because the borrower never asked for a rate lock or were never aware of what a rate lock is.

If you have any more questions I am happy to help.
5 Reply
Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
There is a list of recommended STR lenders on BP. I would definitely consult this list, and I recommend any of the top three!
2 Reply
Kim Colandrea
Investor · New Windsor, NY · Member since 2015 · 1 post · 1 vote
2y
Hi Jeff, Could you share dome of the DCRS lenders you ended up closing with?
1 Reply

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