Beeline for DSCR loan
Just wanted to reach out to the BP community and see if anyone has done DSCR loan through BeeLine? If so what was your experience like?
#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
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#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
Hey @Forrest Adkins, this appears to be part of a new family of lenders who are AI driven. They do collect a lot of personal info like full access to your accounts to make decisions etc.
Quick approvals are the norm due to having access to your accounts. Their site has a lot of "trendy" stuff like using WTF is a DSCR loan and such. Seems built to appeal to younger folks.
The loans aren't available in all states. Interest rates are in the 8% range for investment loans.
Here is a basic review - https://smartasset.com/mortgag...
Their website is trendy and user friendly, but when it came down to the actual rates I was quoted I found their rates highly uncompetitive compared to other DSCR lenders out there.
I always send clients to TheLender. Their rates dropped below 7% last I heard. Might be worth checking them out
Quote from @Mack Lengel:Thank you! I’ll check them out!
I always send clients to TheLender. Their rates dropped below 7% last I heard. Might be worth checking them out
Were you able to get funding through Beeline? How was your experience? Any recommendation for another lender that you went with. Thanks
When looking for a DSCR lender for your short-term rental, ask how they can underwrite short-term rental income. Most DSCR lenders use LTR rents or TTMs, some use STR 1007, but the most aggressive ones can use AirDNA. It all boils down to finding a lender with a product that matches your investing strategy
Forrest -
Not sure what transpired on this loan, or if it did even transpire, but I would give two pieces of advice here regarding DSCR lending, one of which specifically for STRs:
1. Bigger Pockets has a list of recommended DSCR lenders that they themselves have vetted/are comfortable reccomending. That is a great place to start.
2. When seeking DSCR debt for STRs, some key questions you should be asking your lender are:
- Can you underwrite with AirDNA? If so, are there any restrictions (i.e occupancy, market grade, etc, if DSCR is below 1.00x, etc.)
- Can you underwrite with historical booking history? If so, do you need a full year of booking history to underwrite using historicals?
- Can you use an STR based 1007? This really only exists in vacation markets but worth asking to make sure your t's are crossed and i's are dotted.
- What happens if the property appraises as rural? Again, this will only apply to properties in specific markets where the asset could be considered "rural" but if there's even a slight doubt/chance that the property could appraise rural, make sure you understand, what, if anything, are the ramifications.
Quote from @Zach Edelman:
Forrest -
Not sure what transpired on this loan, or if it did even transpire, but I would give two pieces of advice here regarding DSCR lending, one of which specifically for STRs:
1. Bigger Pockets has a list of recommended DSCR lenders that they themselves have vetted/are comfortable reccomending. That is a great place to start.
2. When seeking DSCR debt for STRs, some key questions you should be asking your lender are:
- Can you underwrite with AirDNA? If so, are there any restrictions (i.e occupancy, market grade, etc, if DSCR is below 1.00x, etc.)
- Can you underwrite with historical booking history? If so, do you need a full year of booking history to underwrite using historicals?
- Can you use an STR based 1007? This really only exists in vacation markets but worth asking to make sure your t's are crossed and i's are dotted.
- What happens if the property appraises as rural? Again, this will only apply to properties in specific markets where the asset could be considered "rural" but if there's even a slight doubt/chance that the property could appraise rural, make sure you understand, what, if anything, are the ramifications.
A great website to check to see if a property will be treated as rural: https://www.fns.usda.gov/sfsp/rural-designation