All Forum Posts by: Brittany Minocchi

On a purchase, yes. You'll have to meet higher ratio and FICO requirements. 

I've seen some lenders place limits on the number of loans a borrower can hold, but most don't. As for by-the-room rentals, many lenders won't allow that and if they do, they qualify you off of the long term market rents (which, as I'm sure you can imagine, would be considerably lower than the actual per-room rents). I have been able to find a couple of options for this setup though, they just require separate leases for each room and sometimes 2-3 months of rental receipts as well. 

Hey Stacie!

Yes, you can do a cash out refinance on the property to pull out some of your equity. If you want to do a conventional cash out, you'll need to wait until you've met the 12 month seasoning requirement. If you are open to non-traditional methods of financing, you could use a debt service loan to bypass that requirement. Since you've completed rehab, you wouldn't have a seasoning requirement. Depending on the state, up to 80% LTV is possible. Happy to answer any other questions if you'd like to connect!

My suggestion if your goal is to free up some equity to use for another purchase - start small with the single family home with a cash out refinance. If you can rent it for enough to cover the principal, interest, taxes and insurance and still put money in your pocket, plus cash flow on the property you're purchasing, that would be ideal. Not to mention, you're adding an appreciating asset to your portfolio. 

Google reviews, Facebook/Instagram pages and reviews, company websites, general social media presence....also, it's not required for that loan type, but some of us are licensed through the NMLS because we also do conventional loan types that do require it. That's a solid way to make sure someone is legit. Happy to answer any questions if you'd like to connect!

Yep, there are lenders that'll allow you to close in your name!

If by fixer upper you mean outdated but livable, you're good. If it's uninhabitable or in need of major repairs, that's a no-go for DSCR.

Definitely not ideal or something I'd recommend to someone. 

To BRRRR, you'd start by either using your own funds to buy and/or rehab the property, place a tenant, then refinance into a long-term loan. If you need financing to buy/rehab, you'd be using a fix and flip loan, which is a bridge loan. These are short term (12 months is common) with a balloon, so you'd want to refinance before that 12 months is up. For the refi, DSCR loans are super popular. These are 30-40 year loans. You don't need to provide income or employment history and DTI is irrelevant, but your credit and whether the property services the debt will be factors. You'll want the rents (or market rents) to meet or exceed the monthly principal, interest, taxes, insurance and HOA if applicable. LTV is typically a max of 75-80%.

if the property you buy already has a tenant or isn't in need of any rehab, you could jump straight into the DSCR or even use a conventional investment loan if you can qualify with employment, income, DTI, etc.

Your credit score is high enough to get something done, but whether or not that delinquency will fly is going to depend on the lender/underwriter. You'll have more flexibility with non-traditional lenders, traditional will all follow the same Fannie/Freddie guidelines. Happy to look into it for you if you'd like to reach out!