All Forum Posts by: Jay S.

Hey Kevin, I would say It depends on multiple factors. 

1) how you want to take care of debt once you get cash out vs HELOC?

2) Some folks prefer to only pay interest for the money they use - which is HELOC here. Vs in cash out; your payment will be fixed.

3) LTVs => HELOC LTV for Rentals go up to 70% usually. DSCR Cash out Refi can go up to 75%.

4) 1st Lien as Cash out Refi or 2nd Lien as HELOC? Some folks do not want to touch 1st Liens if it is low rate.

Hi Mark; multiple options out there. On our end, as long as you have 720+ credit score and DSCR Ratio 1.0; you are good to go for 15% down payment on a DSCR anywhere in USA for Single Family Homes & 2-4 Units. Feel free to reach out if you want to price out anything.

Hey Andre,

There are multiple HELOC products out there which can close fast (within a week) & are not based on Tax Returns etc. and will still take income as long as your friends income is getting deposited into the Bank account. Feel free to dm if you want me to run a specific HELOC scenario.

Thanks! 

Yes - you can get a DSCR Loan with 15% down payment. Multiple Lenders out there which offer this.

On a high level; you should have below (besides other minor guidelines) to qualify for 15% down DSCR:

1. DSCR Ratio = 1.0+

2. Credit Score = 720+

3. & Last - Single Family Home & 2-4 Units. 

Hope this helps. Happy Investing! 

Hi Michael. Securing Lending shouldn't become a hurdle is the Deal numbers works. 

Depending upon the Lenders if you qualify, you can get up to 100% in Rehab Financing and/or up to 90% LTV on Purchase Costs. Rehab Loans do not generally care about your DTI or your income. ARV is a very important factor here. 600 FICO is minimum. Feel free to DM if you have any specific questions.

Yes, you can do DSCR to get your money back. Main thing to watch out is DSCR Ratio. It will depend on Lender if they take Rents from Appraisal (1025) or Rents from your existing Tenants. Some Lenders can even take just the Lease Agreement. For 2 units; DSCR can go to 85% LTV or 15% down for purchase OR 75% LTV for Cash out in your scenario.

Hi Jordan. That's a good question. There are thousands of Lenders out there which provide different DSCR loan selections and everyone is going to have different rates and terms and costs which can become very confusing.

Rather than comparing Lenders/DSCR loans solely based on these factors, I would advise you to focus on below questions and prioritize what you really need in the DSCR loan/Lender?

Example: 

1. Is 15% down payment for DSCR is more important to you? Or are you ok with 20% down?

2. Is closing in LLC is important?

3. Is having debt not reported on credit is your priority?

4. Is rate or terms your top priority?

5. Is origination costs makes you select the Lenders?

6. Is Fast closing or easy underwriting important?

We originate loans with 100+ lenders and will tell you that you cannot have All of the above :) 

Just set top 2-3 points of what matters to you most and that can help you in selecting which broker/lender to go with. Hope this helps! 

Hi Alleigh. Yes you can cash our up to 80% of value. Let’s say your rental value comes as $1M, you can do cash out dscr refinance and take out $800k (minus closings costs). Seasoning timE do vary across lenders. Feel free to dm me if you have any specific questions or needs full guidelines for this loan product. 

Hi Jerome. Where is your rental based? 
Usually the helocs for investment properties have a max 50% dti and can go up to $250k depending on your credit score. If you don’t qualify, other option is HELOAN. Both are 2nd mortgage liens. Feel free to dm if you need any help in these loans or have questions. We can get it approved in as low as 5 days. 

Yes, you can do it. I've helped few clients in the past. Ask about DSCR no ratio products. Depending on the Lender, they can take less than 2 years experience. Let me know if you want to know it's guidelines.