I have a question and would like to receive feedback from those with experience. I am looking at a turnkey duplex in Memphis with a purchase price just under 100k, what type of loan should I be looking for, I have read about DSCR loans but not sure if there are other options.
Lender · Orange County, CA · Member since 2019 · 299 posts · 255 votes
4y
If you need the loan to be in your LLC, you'll need a DSCR or commercial loan. If you're fine with the mortgage being in your personal name, you can just get regular conventional financing. Conventional financing will give you better terms than DSCR or commercial.
If you need the loan to be in your LLC, you'll need a DSCR or commercial loan. If you're fine with the mortgage being in your personal name, you can just get regular conventional financing. Conventional financing will give you better terms than DSCR or commercial.
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
4y
DSCR loans are a good bet but it might be a little tricky at that loan size / property value. For example, I'm a DSCR lender and our minimum property value is around $150k
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
4y
DSCR loans are a good bet but it might be a little tricky at that loan size / property value. For example, I'm a DSCR lender and our minimum property value is around $150k
Lender · Greenville, SC · Member since 2022 · 37 posts · 10 votes
4y
@Luis Fernando Botero, I would be more than happy to refer you to a DSCR lender that sounds like would be exactly what you are looking for! They have competitive rates and terms and their minimum property value for turn key rent ready properties is $75,000.
Real Estate Agent · Memphis · Member since 2021 · 16 posts · 10 votes
4y
You can get a conventional mortgage on any property under 4 units. I really like Orion Federal Credit Union (I've closed dozens of deals with them) Security National is really well known for being well versed in the local market. Community mortgage is also excellent and has great customer service. The other big boys are Landmark Trust. Bank of Brighton is smaller, has more personalized service and has some flexibility (I could be wrong but I think they hold some of their loans as opposed to re-sell them to the post secondary market).
Lender · Franklin, TN · Member since 2026 · 28 posts · 2 votes
3d
Under ~$100k a lot of DSCR desks bounce on minimum loan or property-value floors, so don't assume rent-based is the default. If the note can be in your personal name, conventional on a 2-unit is often cheaper; if you'll live in one side, FHA/house-hack is usually the payment winner. Save DSCR for when you need LLC title or your personal DTI is the blocker — and get the lender's min loan amount in writing before you burn a week on a sub-$100k file.