ITIN DSCR Help

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  • Matt Cartwright
    Lender · Newport Beach, CA · Member since 2016 · 68 posts · 18 votes
    2y

    Do you have US based credit scores?

    0Reply
  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    2y

    @Ramiro Ramirez - Yep, reach out!

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    2y

    Yes, there are ITIN DSCR lenders out here for $100K and up DSCR loans.

    More info on DSCR loans:

    DSCR loans won't use your income to underwrite the loan.

    DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

    Here's a bit more in detail about how rates are calculated for DSCR loans:

    1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

    780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.


    2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

    3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

    4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

    I've included an example below to help illustrate this.

    So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

    See example below:

    DSCR < 1

    Principal + Interest = $1,700

    Taxes = $350, Insurance = $100, Association Dues = $50

    Total PITIA = $2200

    Rent = $2000

    DSCR = Rent/PITIA = 2000/2200 = 0.91

    Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

    DSCR >1

    Principal + Interest = $1,500

    Taxes = $250, Insurance = $100, Association Dues = $25

    Total PITIA = $1875 Rent = $2300

    DSCR = Rent/PITIA = 2300/1875 = 1.23

    DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

    Happy to connect to discuss further.

    [email protected]818-770-0340
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Ramiro Ramirez:

    Are there any lenders that can help with ITIN DSCR out there?


    Yes it is very similar to a normal DSCR loan. We would just need to verify you have credit history here in the US, and an ITIN letter.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Colin McMahon
    Lender · Miami · Member since 2022 · 99 posts · 18 votes
    2y

    Hi Ramiro!

    I'd be happy to help. Is this for a purchase or refinance? I'll reach out via DM to connect!

    0Reply
  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
    2y

    @Ramiro Ramirez

    Plenty of great DSCR lenders on these forums. Check out the Lender finder https://www.biggerpockets.com/business/finder/lenders

    [email protected]
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  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y

    Yep, you have a good amount of options. Do you have scorable US credit? If so, you'll get better terms, although not ALL lenders require US scores. Happy to help, feel free to reach out. 

    [email protected]330-354-6590
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  • Alex Hunt
    Lender · Member since 2022 · 441 posts · 134 votes
    2y

    Hey Ramiro, happy to help on this!

    0Reply
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