All Forum Posts by: Brittany Minocchi

 The name of the lender is usually shown on the pre-approval letter. In my case as a broker, the name of my company would show - not the name of the lender I'm brokering to. That offers my buyers a little bit of protection in instances like this. 

Hey @Justin Bettano!

The first thing worth noting....if you plan to occupy the property at all, you won't be able to get a DSCR loan as they prohbit owner-occupancy. A second home loan isn't as appealing as it was in the past after adjustments were made to make pricing similiar to that of an investment property. There is the perk of being able to put 10% down instead of 15%+, but you'll take a pricing hit with the minimum 10% down payment.

If you don't plan to occupy, DSCR loans are a great option if you can't qualify for conventional for one reason or another. As far as condos, they'll be either warrantable (meaning they conformm to conventional standards) or non-warrantable. Non-warrantable condos have a few extra hoops, but they're doable. Expect to need 20-30% down for the best terms.

Good luck! Happy to connect if you have any questions. 

Hey @Nandish Desai!

Congrats on the sale of your condo. Yes, you can absolutely close a DSCR loan in your personal name. Some lenders won't allow it, but there are lenders that do. it is a business purpose loan - you'll need to sign a form stating that you won't be occupying the property and your rate may be slightly higher than if you were to close in an LLC. DSCR loans DO look at your personal credit, as most of them still require a personal guarantee even if closing in an LLC. To qualify, the income from the property will need to be equal to or greater than the monthly principal, interest, taxes, insurance and HOA (where applicable). Your personal income, employment history and DTI is not relevant with this loan type.

Feel free to reach out if you have any questions, happy to connect! 

Hey William! From a financing standpoint, here are a couple pointers:

1. With conventional financing, your income, DTI and employment history will be used to qualify you. There may come a time where you no longer qualify for conventional financing for one of those reasons (usually DTI for investors).

2. If you buy a property with the intention to rehab and refinance (BRRRR) to pull your cash out, you'll need to wait 12 months to use the appraised value with a conventional loan. Otherwise, the amount of cash you can pull will be based on the purchase price instead.

To get around both of these hurdles, investors typically explore debt service loans as an option. They don't look at employment, income or DTI, and many lenders only require 6 months of seasoning (or less) to use the appraised value. The main downsides can be slightly higher rates and/or fees and a prepayment penalty. Just something to keep in mind! I talk to people reguarly that think they have to stop investing or go straight to hard/private money once they have 10 conventionally financed properties or can't qualify for one of the reasons I mentioned previously, but there are other options.

Best of luck in your journey and feel free to connect!  

It's not necessarily that you're considered a riskier borrower per se, it'll depend on whether that STR is reported to your personal credit and included in your DTI and/or whether you need to count the income from the STR to qualify for the primary residence. If you need to count the income, you'll want to have a full year from the STR in most cases. Also keep in mind that if you write off a bunch, that will affect the income that's used to qualify you.

What's up @Armando Albarado!

Congrats on beginning your journey, OH is a great place to start. Are you local to the area? Are you planning to live in one of the units? Just curious, what made you want to start with a 4-unit over a duplex? 

Banks and credit unions don’t typically have those types of products, but brokers do! I’m happy to discuss, feel free to reach out. 

What’s up @Benjamin Miller! 

Welcome to the world of real estate investing. There are a ton of people on these forums willing to give advice and point you in the right direction :) are you planning to invest locally or out of state? 

Sounds like a good buy! Akron has been a hot area lately. If you decide you want to pull most of your cash out, you may be able to do either delayed financing or a cash out refi depending on the timing/situation. Just something to consider so you don’t have money tied up you could use for another project. I’m local to the area, always happy to connect! 

Happy to help! I can do a DSCR cash out refinance in TX with no seasoning (if you've completed rehab recently) on 1-4 units up to 80% LTV. Feel free to reach out.