All Forum Posts by: Matt Cartwright
Matt Cartwright has started 1 posts and replied 58 times.
Post: Anyone offer DSCR refi up to 80%?
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
Depends where the property is located - I am able to go to 80% in a good amount of states.
Post: Which refinancing scenario is easier?
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
@Carlos Josue Hernandez If you are comfortable going private money there is an opportunity to pull cash out up to 80% of the new market value after repairs immediately after renovations are completed. However these will not fall under a conventional mortgage which is sounds like you are most interested in. If you do want any info on the private money side just let me know!
Post: Looking to refinance a rental property
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
Quote from @Helena Cragg:
Quote from @Riaz Gillani:
@Sean Tift I'm a private lender with expertise in BRRRR.
You may want to go DSCR / private. Here you can get up to 75% of the Appraisal Value back to pay off the HELOC and turn some equity into cash.
Qualifications are credit score and DSCR (which is essentially a measurement of cash flows). So, to answer your questions, you'll want to make sure the property is occupied #1. Then consider the monthly taxes, insurance, and an estimated P&I payment. When taken against the rental income, if you're in the green, you ought to be good to go.
DSCR lenders also offer 30 Yr Fixed Rate loans. No balloon or term renewal. Fully Fixed Fully Amortized. Generally embedded with some variation of a PPP, so consider your time horizon and exit strategy.
Not much else besides the primary benefit of private / DSCR is that it's "LITE" doc. So, no tax returns or income / employment verification. Like I mentioned, credit + DSCR. Liquidity shown via bank statements. The mortgage generally doesn't show on credit reports either. Though you'll personally guarantee the loan, the transacting party can be your entity.
Hope that helps.
Thanks, this info definitely helped me. Are prepayment penalties the norm for these private/DSCR loans?
They typically are yes - you would likely be looking at a step-down PPP so for instance on a 5/1 ARM loan it would be 3%-2%-1% in the first 3 years and then the remaining 27 years will not have penalty.
Post: I have a house renovated in Detroit Michigan
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
Hi @Abinadab De la Torre if you are at all interested a DSCR refinance loan may be a good way to go. No seasoning on pulling cash out and typically you can go to 80% LTV of the market value. Let me know if you have any questions or would like any guidance on taking that route!
Post: BRRRR in Southern CA & Lendor Recommendations
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
Hi @Victoria Velazquez I work for a private mortgage lender that has an office in Newport Beach CA. Would love to connect!
Post: BRRRR: Renting out before refinancing needed?
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
Hi Jason, we personally do not require a tenant to be in the property before refinancing and we are one of very few who have this option! We will take the market rents from the area and use that to qualify instead. If you'd like any additional insight just let me know.
Post: Refinance a rental property
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
Hi Taelon, you typically do not need a pre approval letter for a refinance since you already own the home. If you refinance with a bank they will likely just ask for you to submit an application and income docs to see if your DTI qualifies with this new debt added to your profile.
Post: Best comping tools to Find Accurate ARV and Rents
- Lender
- Newport Beach, CA
- Posts 68
- Votes 18
I use House Canary and it seems to be pretty accurate and it has adjusters to customize the properties case by case basis