All Forum Posts by: David Bilandzija

@Jason C. Generally speaking, private lenders do not report to credit. 

@Joleen Specht Congratulations on getting this one under contract.  I may be able to help - where is the property located?  

@Ben Lin These types of buildings are referred to a mixed-use and they are prevalent throughout Philly and the Northeast.  

Lots of advantages for small business owners to own/occupy buildings like these because they set up well for convenient work/live arrangement. 

@Johnny Scott You have options but they carry some limitations. Minimum mid FICO of 600 can get you in the door at a reduced LTV, 60%. Loan must be for business purpose, investment/non-owner occupied. 1-4's, 5+ unit multi-family and commercial properties are eligible.

@Chris Jackson 5-8 unit multi-family is an eligible property type for a number of DSCR lenders throughout the country. It's a realistic consideration if you are already looking at bank alternatives. These private loan programs will generally qualify borrowers based on the property cash flow and your personal credit. Expect the underwriting to ignore personal income, i.e. tax returns, pay stubs, etc.

@Givo Aghasi Are foreign investors with no current US real estate holdings eligible?

@Jimmy Stainback DSCR is a great route. Rates are at or above 7% presently for 30 year fixed DSCR loans. Lenders may offer 75% max LTV for 4 units but the building will need to generate enough cash flow to qualify. If max leverage is the goal and cash flow is an issue you still have options. There are also lenders in the investment loan space that will ignore DSCR, trade-off being a higher rate but you can still get 30 year fixed financing or long term interest only options based on a 30 year term. Good luck!

@Jorge Gonzalez Remember to factor homeowner's insurance into your calculation.  

No. For the program i was referencing a current renter is not needed, property can be vacant.

Hey @Joe Fermin 90% combined LTV is the best I'm aware of on long term rental loan program (30 yr fixed). The lender I've worked with in these scenarios will offer 75% max LTV on a first trust deed mortgage and allow seller financing to make up the remainder (up to 90% CLTV).

There's no look at DSCR for qualifying the loan either. Good luck