All Forum Posts by: Brittany Minocchi

You'll have to pick one or the other - lenders that'll do 15% down will have a $100k+ minimum, lenders that go below $75k will require 20% down. 

Quote from @Benjamin Emery:

@Account Closed and @Brittany Minocchi: Can you share any lender names? Also have the same question but finidng it difficult to find any lender offering HELOCs on investment properties.  

 Hey Benjamin - 

I'm a broker, the lenders I was referencing are wholesale lenders that we broker to.

Quote from @Justin Sanislo:

Quote from @Brittany Minocchi:

Quote from @Justin Sanislo:

Good luck, I've been calling around all day. The absolute best I can find is 80% with DSCR 1.2 or better, assuming 4 units or less.

I'm looking for 6 units trying to get 75% and the best I can get it 70% so far......

 5+ units takes you from residential to commercial, so the terms will be a bit different....depending on the scenario and your borrower profile, you may be able to get to 75% on a 6 unit. I quoted it for a borrower on an 8-unit a couple of weeks ago. Maxing out at 70% is pretty common with a lot of commercial lenders. 

The problem is the loan amount is too low for many people. Lowest I’ve found was a loan amount of $250k and several lenders are wanting $400k as the lowest loan amount.  

Yep, $400k is standard and a few will go down to $250k. I've had to turn a ton of people away because their loan amounts were too low, so I decided to do some digging and FINALLY found one that'll go below $250k.

Depends on what you consider a "great" rental....are you looking for appreciation, cash flow, a mix of both? What class of neighborhood are you looking for? What cost of entry? Are you looking for single family or multi? More info is needed :) 

Fees realtive to a low loan amount are always going to seem high - a lot of them are fixed and don't vary based on loan amount. It's not uncommon to pay higher origination fees for smaller loans, although you're over 4 points here....it sounds like this particular broker has a $3,000 minimum, which isn't extraordinarily high. Can you find someone to do it for less? Probably. You can take a loan estimate or fee sheet from one lender/broker to the next, and there will almost always be someone willing to undercut the previous person just to win the loan. That doesn't mean they are the best option to CLOSE that loan. If you've been happy with whoever you're working with, they communicate well, are responsive, look out for your best interests...that's important to consider too. 

If you have an 805 and low DTI, assuming you can also qualify with employment history and income....check out a conventional cash out instead and compare.

When you say vacation home that leads me to believe you occupy at least part of the year...if that's the case, you CANNOT use a DSCR loan as many have mentioned here. That's a business purpose loan that doesn't allow owner-occupancy whatsoever, and you sign a document at closing agreeing to this. If you're willing to make it strictly an investment property, then you could refinance with a DSCR cash out. DSCRs don't require employment history, income or DTI information.

Conventional financing doesn't really have a minimum loan amount, it just depends on whether or not the loan passes compliance. Individual banks/lenders may also have overlays, so even though Fannie/Freddie doesn't have a minimum, that specific bank/lender might. I'm in OH, so smaller loan sizes are pretty common out this way. 

If you're looking at a DSCR loan, the lowest I know of is $50k with a minimum value of $75k. You'll likely see higher fees and/or rates with those sorts of programs.

Yes, you can get fianancing on condos with conventional and nonQM loan types. Biggest thing is whether or not it's warrantable as others have mentioned, or if it's a condotel. Doesn't sound like a condotel if it's a small building. Happy to discuss if you have any questions, feel free to reach out. 

If you mean last March as in 2023, you can pull cash based on the appraised value now with most types of financing. If you mean this past March 2024, conventional financing wouldn't be an option unless you wanted the LTV to be based on the purchase price of the property. If you're looking to use appraised value, you could go with a debt service loan and seasoning would depend on whether you did any rehab. With completed rehab, you may not require a seasoning period. Without rehab (or very light rehab), you'd be looking at 3-6 months with most lenders.