All Forum Posts by: Mark Munson

Hi @Taylor Wisnewski

If a traditional bank won't refinance you due to your DTI, then you can use a DSCR loan. Depending on how much equity you are trying to access, you may only need to collateralize one property. The lower the loan to the value of the asset, the better the rate (assuming good credit). DSCR loans avoid any DTI issues as pay is never considered. You won't be able to touch any equity in the primary and secondary home, as those as owner-occupied properties and DSCR loans are for investment properties. Feel free to message me, happy to walk you through any options or give you some feedback on what to expect.

Hi @Jaime Carpenter

If you are paying cash, just make sure when you are refinancing you are meeting minimum loan amounts. Ideally, you will request at least $75k to have the vast majority of loan options available to you, as that is the minimum for most lenders. Keep in mind this will be comped as a tri-plex too, not as a SFR and a duplex. If they are all on one parcel, the appraiser will comp as a tri-plex. I did 3 detached SFRs on one parcel in Indy, so I've done this recently.

Hi @Britney Ross

DSCR lenders won't lend rehab money, as those loans are for turn-key properties only. Are you just looking for a DSCR lender? You can find plenty here on BP. If you are looking for a true private lender, not a HML, they tend not lend on 30-year loans, thus not really a DSCR lender. Feel free to message me if you need advice.

Hi @Constancia R.

     If they are charging you an upfront fee, they are more than likely not legitimate. Some legitimate lenders may charge an application fee, but I'd avoid that if possible. Every lender or broker should be paid at closing, that way everyone is incentivized to get your loan closed. You can search for their NMLS # as well, but in the private money/hard money space there are grey areas in certain states as to whether or not you need to be licensed. If you can't find a single review, that may be a sign; albeit, some smaller lenders with their own fund or private money may not have a ton of reviews versus the bigger lenders. If you are uncertain, just use the search on BP to find one that is well vetted.

Hi @Shane Burlingame

      Feel free to message me, I can walk you through what to expect and what is needed. There are a lot of good lenders on BP, you can find them in the "Build Your Team" menu up top on BP. It is a fairly easy process, so I'd talk to as many lenders as you can and just find one that communicates well and provides more value than just rates and terms on a quote. You want someone who can help you assess your deals and, ideally, is an investor too. 

Hi @Nathan Frost

Floor rates on DSCR are hovering around 7-7.5% with most DSCR lenders I come across. There are a lot of moving parts, such as the ability to tack on a 10 year I/O period with 30-years fully amortized after that, thus a 40-year loan. You can also roll into the loan a buy down on the interest rate. You can up the rate to get a lower prepayment penalty and other various things. If you go that route, just make sure the lender locks your rate for 45 days at the beginning of the loan process, I won't work with a bank that floats the rate, as that is far more risky.

Short-term rentals are obviously much more time-consuming, so if you are moving out of state than I'd suggest just doing a long-term rental. If you want to message me, I can dig into more. I'm a member of the NCREIA and attend the Raleigh REIA every month, so I'm familiar with the area of course, happy to help!

Hi @Wesley Neill

     Welcome to BP! Where is the property located at? I see you listed Raleigh, NC in the post, so I assume it is there? 

Hi @Nina Gibson

You will need to come up with the 20% yourself. Most DSCR lenders won't allow for a 2nd position loan at closing to cover the down payment. They want you to have capital invested into the deal. If you can afford 10-15% down instead, then I would consider buying a fixer-upper and borrowing 85-90% of the purchase price plus 100% of the rehab funds on a fix/flip style loan, then refinancing out after the work is completed (BRRRR strategy). There are more moving parts than what I stated, but that may be a better approach for you. Feel free to message me if you need help walking through every option.

Hi @Gerardo Lewis

     Look for the parcel # on the Zillow page, assuming there is one. You can search most county sites with the parcel # too, that may be easier.