All Forum Posts by: AJ Wong

Hi Cole. A DSCR is a debt service coverage ratio loan (against the new property) and effectively uses a proportion of the current or proposed rental income to qualify. Typically 15-25% down or wherever the ratios work. A HELOC is secured against (in this case) the primary and can be utilized for either a proportion of the down payment or (if you have enough equity) the entire purchase price.

Many investors will use a HELOC or fixed second mortgage as the source of down payment funds to cover the 15-25% down on a DSCR or investment property mortgage. There are many other ways to qualify besides DSCR, like bank statement averages or even P&L statements that can offer lower down payments..check in with @Joseph Chiofalo he's a 20+ year mortgage colleague and can help with structuring and options. Good luck! 

Hi Julian, 

After repair value is usually based on comparable sales not rents.. Also is the sales price $850k? Or the total estimated ivestment? If the sales price is $850k you will need significant down payment to carry the DSCR loan on $5300 current rents...check in with @Joseph Chiofalo  as DSCR loans 5+ units are typically a bit more difficult to place as well. 

Hi Keith, where will the investment be made? For preferred jumbo investor lending programs check in with @Joseph Chiofalo to help with baseline structuring and a Pre Approval vs PreQual which has helped several of my luxury buyers win competitive offerings. They have some really exceptional high loan amount investor loans worth considering. Good luck! 

HI Jin, what are you attempting to determine? Whether a condo is warrantable or down payment requirements and terms structuring? 

For conventional financing, condos need to be 'warrantable' if the condo or HOA doesn't meet those guidelines it is 'non-warrantable' and there are alternative or Non-QM (non conventional) lenders that offer financing. Usually slightly more down payment but possible. Check in with @Joseph Chiofalo for lender questions, he's a condo guru based in SoFLA. Good luck. 

Hi Elvis! Oddly born on his birthday and was supposed to be Elvis Wong..lol Anyhow check in with my lending partner of 20+ years @Joseph Chiofalo he is a nationwide investor focused lending savant. Good luck! 

Hi Mya and welcome. You're on the right track and right place. Jacksonville will only continue to grow..check in with @Joseph Chiofalo he's a excellent local lender excellent at educating first time investors. Good luck! 

Hi Butch. Great investment getting ahead of the college housing expenses and putting the equivalent rent money to work..If the property is generating income it can be classified as a 'second home.' And correctly..you cannot co sign as a primary if it's occupied..2+ units can sometimes require larger down payment (as you've found) another option could be to access equity against another property..check in with @Joseph Chiofalo for potential lower down payment options..might be able to get to 15% down..Good luck! 

HI James, I appreciate option 2 being an option..plenty of examples of investors rushing to use their 1031X and the investment losing more than they 'saved.' 

How was your STR experience? Luxury STR's can really perform exceptionally, I've heard St Augustine is a strong market, can't go wrong with anything Naples..Savannah is also a hot spot. A major component our luxury STR clients the moment are loan terms. Check in with @Joseph Chiofalo for a preferred jumbo lending program that's really improved investors incentive and cash flow.

Good luck! 

HI Sherrie, ADU's are generally a great return on investment..I'd double check the DSCR and FHA rates though...A DSCR cash out client was just quoted the high 7%'s to very low 8%'s and FHA have improved tremendously this past week...on purchase quote today FHA rates were in the high 5%'s..check in with @Joseph Chiofalo Good luck! 

HI Adelaide, @Joseph Chiofalo has a RE broker he works with closely in the area he can refer you..also an excellent 5+ units lender. Good luck!