DSCR loans for Sober Living Homes ?

Question

Hey everyone,I am quite new here but love all the content. I have been reading a lot about DSCR loans. I see how they would fund based on the numbers of a long term rental, short term rental, and midterm rental. What about sober living? Are there any DSCR lenders out there for sober living? Has anybody gone this route?Thanks a bunch. Looking forward to all your responses.

Anne N

Michael Penny · Answer

@Anne Nguyen how did this turn out?  Did you access funding?  I would love to chat with you if you are open.

Michael Penny · Answer

@Logan Singleton how did it turn out? Were you able to value it on the SLR income?  Also, what/is any season is required?

Brandon Beardt · Answer

Hi Anne,

I haven't seen any DSCR programs specific to Sober Living, however, we've closed Sober Living deals with a no-DSCR product. It's a different kind of program where we don't even consider the DSCR on the property, we mainly just look at the borrower's credit, their investment experience, and the property itself (where it's located, value, use, etc). Since there is even less documentation to look at/review with this, pricing is a bit higher than your typical DSCR LTR/STR product, however, there are numerous ways you can structure the deal to make certain the #'s work for you.

CJ B. · Answer

@Anne Nguyen how is the property being used TODAY?

Logan Singleton · Answer

Hi Anne, I'm actually in the process of underwriting an SLH DSCR loan currently, and it is scheduled to close within the next two weeks.