All Forum Posts by: Joseph Pytcher

 Yes, but you need to delist the home prior to submitting it. 

The home RARELY appraises for more than the listed price however. Appraisers are going to look at how long the home was listed and any price reductions. 

Yes I have plenty of DSDR lenders that I work with that will lend to you based on appraised value, not sold price, with zero seasoning, meaning you can buy today and refinance tomorrow, when doing a cash out refinance. None will do this on a purchase because they only lend on the lesser of the two whether it be sales price or appraised value. Feel free to reach out with any questions. 

The lender will use the appraised value.

Hello Joseph:

For DSCR financing, the market rents on the appraisal (1007) should be used for qualification purposes. If there is a lease agreement as well, the lender will use the lower of the two. (market rents vs lease agreement)

I hope this helps!

-Jeffrey

BP Community,

I've been working with two brokers for the last four weeks on a DSCR loan, but I still have nothing to show. Long story short:

1. My wife and I bought a property under an LLC. We converted a single-family residence into two condos.

2. We put the condos for sale this year and have had little to no interest. We decided to pivot and refinance the hard money construction loan with 13% interest. We removed the listing a month ago. I learned that trying to get financing after listing a property is hard to do. 

3. The two units together should appraise between $1.6 to $1.7 million. 

4. We will rent the bottom unit short-term and the upper unit rent per bedroom for medium to long-term stays. Both will be furnished. We should get around $12k per month. However, the market rate is lower, around $9k together. 

4. The outstanding loan is around $1.2 million

5. Our credit scores are not good since we ran up the credit card to finish construction and furnish these units. My wife is around 700 depending on the credit reporting agency used. Mine is worse in the mid-600s. 

6. In a perfect world, we get an LTV of 80% with an interest rate under 8%. Obviously, the lower the better.

7. Our hard money loan matures in the middle of June. We want the DSCR loan to close before then.

If there is someone who thinks they can help, please message me ASAP. If someone has any other ideas please let me know. 

I appreciate the advice,

Eric

I own a 12 unit property in Ohio purchased in December that I'm looking at refinancing. Anyone have good lenders with low seasoning requirements (6 months)? 

OK, @Joseph Pytcher. I recently worked on something similar for a CFO client out West and I believe this would be considered a "small" deal and possibly be done via SBA/USDA. I would recommend you contact Shawn Greenway @ Celtic Bank and Riley Risto @ Gulf Coast Bank & Trust. Let me know if you have any questions.