All Forum Posts by: Jason Wray

Abe,

You can get a quote on an actual "Mixed-Use" loan where the loan is priced under this specific loan program.  You can also look at Portfolio where its an investment but given an exception for the "unique" property type.

Based on credit scores your down payment can range from 15%-25% down.

When we offer our DSCR loans we have a three options Correspondent, Broker and Portfolio. Only one of these options has points related to the choice of rate. As you know with Correspondent (banked loan) we do not charge points and the PAR rate is derived from margin based on the branch bucket, Banker bucket - similar to your loan officer compensation plan. So when I price it depends on the channel in which the borrower qualifies.

TFSB is a Fully Delegated bank so we have our own Portfolio products with (No Prepays) and the rates are set based on Fico/LTV. I do not need to live price these in Optimal Blue or on a pricing engine so my rates are not effected in this case on a portfolio loan since (None) of my products have prepays. Hopefully that makes sense and when I worked for a "Lender" I was also a little concerned on how they offered products with no overlays and pre-pays, that's why I switched sides.

Tony,

I appreciate the concern but fortunately I am an FDIC Banker not a broker or lender so my DSCR programs have a (No Prepay) option. I also have a true Portfolio where we have "No Overlays" and can make funding acceptions.

I have 17+ years in the mortgage banking business I would only offer advice that i would give to my family or friends. DSCR not my first choice but a great way to increase your REI portfolio if you have an income or employment issue.

It's good to see the motivation and timing is everything, Stay Hungry!

Kobe,

Depending on your background or book of business you want to identify what your strengths are and what will be your brand.  In short if you have never been in a direct sales type position my advice is do some hunting around and talk to as many banks/lenders as possible.  Its not just the name or the bank or lender but more about the team you will be working on and how they can help build your sucess and pipeline of clients.  We are in a high rate enviroment but that soon will change so things will get a lot better for banker/loan officer over the next 2-3 years.

If you do not really have a strong slales background I would suggest looking for a bank/lender who will offer you leads or have you set up with a dialer.  Working from home to start out in this business is a bad idea you want to be around "Seasoned" bankers/loan officers, processors, branch managers etc.  That way you can shadow different team members and lean on them for day to day hurdles.  You want to learn the programs and guide lines in and out like the back of your hand.

When you interview you need to make sure you are asking the important questions for best compensation and also best results for your customers.

You asked a good question regarding sales technologies, its vital to have tech tools that make your life as well as your customers and real estate agents life much easier.  It would take a long winded conversation to go over the best tools but feel free to email me if needed.

Cathy,

It's tough as a new investor to digest losing a low rate in order to take cash out through a refinance. You need to evaluate the burn rate and the equitable positon you will be in (ARV) after the renovations and repairs on top of the future growth by having a better crub appeal and higher construction rating.

Even though you have a low rate do not let it stop you from using the equity through a cash out refinance.  Because you can do a couple of things to get back to that low rates down the road.  You can take advantage of a rate buydown during the cash out refinance.  You can also wait 12-24 months when rates start to drop and also do a rate buy down to get back to the original rate.

The rate buy down pays for itself over time and the cash allows you to gain more passive income through higher rents or a down payment for another home.  Maybe consider taking out enough for a small down payment and renovations so you kill two birds with one stone!

Danny,

First its possible to take out up to 80% cash depending on your investment property’s situation. Once you get the cash I would then take a look at a couple of different programs. If your buying another investment rental you can use a portion of the $100K to put 15% down. No reason right now to put more than that down especially while values are going through a teeter totter effect.

You also have an option to buy a "Second Home" and use an industry loophole to be able to put 10% Down and still use it as an AIRBNB/VRBO. You need to make sure you are working with a seasoned Banker/Loan Officer who can be on the same page with you to ensure your REI goals are met. $100K is a good chunk of change so my advice is do not use all of it as a down payment. Spread it out over 2-3 investments which does depend on price point in your market.

Hi Katlynn,

We have a few things that will help make 2023 and 2024 a great year.  First we are in a high rate enviroment which is not so great right now.  But that is going to change as rates start to drop which will cause a positive spin from the News Media, Social Media and your every day to day conversations.  Which will start hyping up our Nationwide real estate markets and help boost our home sales, mortgage applications, Economy etc.  Money will start to flow again and things will start to feel like we can breath again and the further past that COVID chaos the better!

We also have one last year before a New Presidential election where everything will change once again and we will be back in a new cyle.  Real Estate will always be a great way to earn a passive income and as a realtor you are going to see a lot of New programs from the banks to start offering less money down and better rates.

The DPA programs are getting stronger and even adopting higher salary individuals for a broader down payment option. There are also more programs coming for those who had a credit issue or carrying a lower credit score for both FHA and VA home loans.

On the investment side of things DSCR programs are now becoming more flexible for those who want to buy investment rentals but have income issues or job sesoning problems. Non/QM is also offering better options for Interest Only programs to help debt ratio by using the Interest only, taxes and insurance payment rather the PITI so now its just ITI.

Hi Shannon,

River West is a great neighborhood to invest in and prices are still extremly reasonable based on home GLA and cash flows. 

You have that 91 Unit River West Apratment project going up this Summer which helps add to the real estate growth.  

You looking primarily for an SFR or Multifamily in general?

Nic,

For a Quad plex using DSCR you will need 20% down and rates right now are not that great but with 4 doors it should debt ratio. One thing to keep in mind about these DSCR loans is they can be a great way to buy an investment property if your DTI is an issue or if you self employed with less 2 years of 1099 income. You can be unemployed and still get a DSCR loan if you have the credit, assets, and down payment.

These DSCR loans are only temporary meaning you buy the property and within the first 12-24 months you can refinanace and lower the rate. If you can show enough income and use the 1007 rent schedule on the appraisal as added income. I would suggest looking into a portfolio loan program which is only 15% down for any SFR, or 2-4 Unit. True Portfolio requires "No Prepays & No PMI (Mortgage insurance) even at 85% LTV.

DSCR also offers an Interest Only option to help keep the payment down and cash flow reasonable for the first few years until you refinance.