All Forum Posts by: Brittany Minocchi

I have one lender that will go that low, but keep in mind many of the fees for these loans are a flat amount and not % based (so you'll have a decent amount wrapped up in costs relative to the loan amount). Rate will also be higher. Feel free to reach out. 

Hey Danny!

Feel free to reach out, happy to discuss. 

Depends on your risk tolerance. Is the HELOC on your primary home? If so, you're putting that on the line to fund your flip. Lots of people go that route, but there's probably an equal number that wouldn't risk their home and prefer to use other people's money.

Are you staying in that area after graduation? If so, I'd also suggest house hacking a duplex. Live in one unit for at least a year and rent out the other. This will be the lowest cost of entry with a 3.5% down payment. If that's not an option, you're looking at a minimum of 15% down for a single family investment property.

If you haven't been working, you'll want to wait until you have a 2-year employment history UNLESS the job you have after college ties into what you're going to college for. 

Hey Jimmy - 

Feel free to reach out. I have 30-year fixed, ARM, 30-year interest only and 40-year interest only.

Most lenders will use the lower of actual rents vs market rents regardless of section 8/non section 8. Some will allow something like 120% of market rents if they come in lower than the leases. 

Maybe with a low (70% or less) LTV or an ARM and stellar credit...also depends on what type of loan you're looking for (nonQM or conventional Fannie/Freddie)

Much less paperwork involved with a DSCR compared to a traditional mortgage if you're familiar with that process! That's the biggest difference as far as the process goes. It may be similar to other commercial lending options, but it really depends on the type of property and the procedure of the specific lender you're working with.

Both! It depends on which one fits you and your scenario. 

If you want to close in an LLC, have a high DTI, low income on paper (meaning your net income on tax returns is low because of deductions), or an unstable employment history, those are great reasons to go with a DSCR.

If none of those apply, look into conventional first. Terms will be better (rates CAN be better but they aren't always) but there's more paperwork involved. 

Both will look at FICO scores.

I'm in Ohio and can assist with either type of loan - you're welcome to reach out with questions and we can compare the two options. Happy to help! 

15% on a single family home and 25% on 2-4 units if you're using conventional (Fannie/Freddie) financing. If you're looking at a debt service loan, 15% is the minimum for a purchase but it's much more common (and rates are better) at 20-25%. 

A debt service loan would be a good option if your DTI is high, you want to close in an LLC, you're self-employed or have low income on paper, or you don't have a stable 2-year work history. All of those are factors with conventional financing, but debt service loans do not.