DSCR Refinance for "Subject to" loan
I purchased a property subject to two loans. The first one is a FHA mortgage, the second is a HELOC. I have grown a little uneasy with how things are going with the person with whom I am paying the loans for, and I am considering looking for alternatives. For my situation I will not qualify for any conventional financing. The following numbers have been rounded to make math a little easier hopefully:
Loan 1 (FHA) balance: $210,000
Loan 2 (HELOC) balance: $50,000
Property is conservatively worth $360,000
Rent would conservatively bring $2100/month
My question:
Would it be possible to get a DSCR refinance loan to pay off the two existing loans? It is my current primary residence, but I understand that would likely have to change as I cannot rent to myself to my knowledge, although if this is not the case I would like to know. Would I need to season the rent first or would it be possible to just use market data? I'm fine getting creative with things and it's certainly a property I want to have long term. If I can provide more non personal details to help with any answers just ask away. Thanks!
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#2 Private Lending & Conventional Mortgage Advice Contributor
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#2 Private Lending & Conventional Mortgage Advice Contributor
- Lender
No I got that part.
But even if he does move out, he would also need to change his mailing address etc.. to match his new residence usually. Or is that not the case with you guys?
Also a lot of the lenders I have worked with will do a Lexus nexus or some sort of background report and the property might still show up as his primary residence. Usually they will want to see a lease in place to make sure he is not gonna live in the property...
They may also want to see his living arrangement. If he is living rent free with a family member and leaves the property vacant, is that still a thing you guys would be able to finance?
- Erik Estrada
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