Any DSCR providers willing to consider Canadian rental experience?

Question

I'm looking to get into STRs and have a LTR portfolio in Canada since 2012 (SFH and triplex). I've lived in Florida since 2014 and we recently acquired another SFH investment property here and have been renting it out the last 6 months. Wondering if I can get my Canadian experience considered to help with eligibility. Although I understand the loan is primarily based on the asset metrics, I also heard they prefer experienced investors (which I am if they'll look at my Canadian experience)

Zach Edelman · Answer

You don't need experience to qualify with a DSCR loan. At most I would expect a leverage reduction of 5% from max LTV. I would reach out to any of the BP recommended DSCR lenders and explain your situation and see what they can offer.

Sarah Kensinger · Answer

I'm not sure if experience is a must for the following lenders, but I would recommend them for a DSCR loan.....Host Financial and The Lender

Doug Smith · Answer

We do prefer experience and I would certainly add that to the "Experience/Track Record" form that we collect when we do a DSCR deal, but you not having US experience is not a deal killer by any stretch. We do deals for Canadians quite often. By the way, welcome to FL. I'm in FL as well.

Daniel Christopher · Answer

@Sarah Kensinger appreciate the recommendation! @Karin Leung if you have any questions on DSCR loans for STRs feel free to reach out.

Karin Leung · Answer

Makes sense that the risk would be reflected in leverage. Appreciate the advice and I will definitely reach out to BP lenders soon!

Account Closed · Answer

Hi Karin:

Your experience managing rentals in Canada would be considered and you should be able to qualify for a DSCR loan. You can probably borrow up to 75% of the purchase price. If one lender cant help, that doesn't mean nobody else can. Each lender will have their own overlays, so definitely talk to a few different brokers/lenders to be sure you find the right fit.

Karin Leung · Answer

That's great to know. I do have funds in USD and would qualify based on all the above so I'm glad that won't be a hindrance for me. I am glad that lenders can access or consider Canadian credit history in this case because it really helps my case!

Caroline Gerardo · Answer

DSCR products vary by "shop." You need: high US FICO, the assets $ US dollars in a bank account for the down and closing costs- generally 20 - 25% down; the MARKET long term rents are used and verified. Some luxury or high cost areas the rents don't keep pace with the prices and you will need larger down payment to cash flow.

If you have funds in Canadian dollars they are calculated with the conversion of the day. You have to put Canadian dollars exchanged into US bank account to send wire/ earnest money/closing costs and show that you transferred the money to the title company.

If you have or had Canadian mortgages (even if paid off past year or two) we can get a targeted credit rating on those loans and add into your credit profile. That demonstrates your history. Lenders have the same access to title, property taxes, and valuation in Canada with digital tools.

Any DSCR providers willing to consider Canadian rental experience?

Any DSCR providers willing to consider Canadian rental experience?

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