All Forum Posts by: Connor Hibbs

I can't speak to Roc, but I know for sure that RCN is not at a par rate of 8% with a 760 score. I just priced out a SFR purchase at 80% LTV and 5-Year 5% PPP and got a par rate of 7.05% and the max buydown got it to 6.0083%.

Assuming a decent FICO Score you should be in the 7's for the most part with max LTV. You'll be able to get into the 6's with a slightly lower LTV or buying down with points, but you shouldn't be above an 8% rate unless you're doing an 80% cash-out or if you have a 5+ unit property then you may be over the 8 mark.

Hi @Tyler Thackston,

Having good liquidity and a high FICO score will always help when looking to get the best terms, but there are a few other factors that may be preventing you from getting the rate you want. I've included a few factors that impact rates below for you.

LTV Requested. going for max LTV will increase the rate you get a bit as it's riskier for the lender to offer 80% of the property value vs. 50% of the property value. Lowering your LTV can help to lower your rate and most changes occur in 5% LTV intervals.

Prepayment Penalty Periods (PPP). Going with a shorter PPP can increase your rate as it tells the lender that you don't plan on holding onto their note very long. By maximizing the PPP to whatever suits your goals for the property you may be able to lower your rate further.

Buying down with Points. Not all lenders offer this, but most will allow you to "buy your rate down" by paying additional costs at closing. If you're close to the mark that you want, then this may be worth asking your lender about.

Hi @Joshua Parker,

It's hard to build a relationship until you've actually worked with them. I'd recommend reaching out to several lenders in the area to learn a bit more about their programs, process, and see how the rep themselves operates.

You won't be able to learn everything immediately, but making notes of things you have problems in, or answers to some questions you have can go a long way towards building the relationship. The more you can show your lender that you are willing to learn and work with them, the more that they will be willing to fight on your behalf in less clean-cut scenarios. As you continue working with them it will get easier and easier.

Hi @DaMare-A Smith,

I specialize in DSCR and purchase and rehab properties. If you have any questions about how those programs typically work or if you wanted a rough idea of what pricing/ structure looks on those types of loans I'd be happy to help!

Hi @Joe Barton,

I'd recommend going with a 2-year bridge loan while you work on getting your score back up. These would be interest only payments and either would have a 6-month or no PPP so you could refinance out once you get your score to where you want it.

If you'd like I'd be happy to connect to get you some rough terms for what this may look like.

Hi Rob, I hope you were able to find what you are looking for. If not, I'd be happy to help!

I'd highly recommend getting a property manager to keep an eye on the property, especially since you won't be able to check in on the property at your convenience. As important as having a PM though is making sure that they are qualified, knowledgeable, and trustworthy. Having a bad property manager can be worse than having none, so do your due diligence before choosing who will look over your property.

Yes, you can. Depending on if there was rehab you can avoid LTV cuts as well if the DSCR is for a purchase then you can usually avoid LTV cuts on SFR and lower unit count properties. For refinances it is always better to have the property rented but is not always required although you may run into LTV reductions.

Principal Balance is in reference to the amount of money that was initially borrowed. This does not include the interest payments and is attached to the amount that needs to be paid off at the loan's maturity date/ when you want to exit the loan (excluding any additional interest that may have been accrued).