All Forum Posts by: Matt Wells
Matt Wells has started 43 posts and replied 123 times.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Connor Hibbs:
If the only issue for qualifying is your DTI then I would recommend going with a DSCR. As long as you've got the cash to close, a decent FICO Score, and the property is cash flowing then you shouldn't have an issue getting a loan like this.
I'd be happy to get you some rough quotes for a DSCR if you have a property in mind already.
@Connor Hibbs Both my property and I meet all of those qualifications. My property is ready, rehabbed, and rented out. Purchased in December 2023.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Robin Simon:
Quote from @Matt Wells:
I don't qualify for any more conventional loans so now I need to go the commercial route. Does anyone have any advice? Should I go for a 5-year ARM, or DSCR, or try to get a long-term ARM or DSCR loan? Are there any other loan types I should look at? The investment property is a duplex. I paid for it with a LOC and am looking to refinance it into a loan. I put around $260,000 into it and it should appraise for $325,000. I want to get a loan for $260,000 to pay off my line of credit. The property is located in Louisville, KY, and has tenants bringing in $2,300 per month. I intend to hold the property long-term. Please, any advice would help!
I think you are on the right track comparing options - however I would note that there isn't really a differentiation between "DCSR" and "ARM" - there are a lot of 5 Year ARM options for DSCR Loans so theres overlap - maybe you are referring to a true 5-year balloon bank/credit union type loan?
@Robin Simon Yes, that is what I was thinking, but now I know I want to do a DSCR.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Ko Kashiwagi:
DSCR is a great option. You could go 30 year fixed and some offer adjustable like 5/6 ARM. If you believe rates will be lower in 5 years 5/6 ARM is not a bad option, and I know some lenders have rate reductions if you go 5/6. Best to compare programs based on rates, reviews, communication and terms!
@Ko Kashiwagi A 30-year DSCR sounds great.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Brandon Croucier:
DSCR is going to be your best bet.
I want to get a DSCR loan.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Erik Estrada:
Quote from @Matt Wells:
I don't qualify for any more conventional loans so now I need to go the commercial route. Does anyone have any advice? Should I go for a 5-year ARM, or DSCR, or try to get a long-term ARM or DSCR loan? Are there any other loan types I should look at? The investment property is a duplex. I paid for it with a LOC and am looking to refinance it into a loan. I put around $260,000 into it and it should appraise for $325,000. I want to get a loan for $260,000 to pay off my line of credit. The property is located in Louisville, KY, and has tenants bringing in $2,300 per month. I intend to hold the property long-term. Please, any advice would help!
Hey Matt,
How much rehab did you put into the property? Or does the $260k include purchase + rehab? When did you purchase the property?
@Erik Estrada The purchase and rehab was over $260k, I guess I am limited by how much of a loan I can get depending on how much the property appraises for. I purchased the property in December 2023.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Joseph Chiofalo:
Hi Matt,
When did you purchase the property?
How is your credit history?
Do you own any other real estate?
@Joseph Chiofalo I purchased the property in December 2023. Great credit. Yes, I own other rental properties.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Andrew Kiel:
as @Jay Hurst mentions, why you can't get a conventional loan? For this purpose I'll assume you already have 10 loans and can't get more. I've run into that problem (it's a good one). The 2 best options I've found are DSCR loans and/or a local lender that does not sell the loan (they hold their own paper). I would also plan on a maximum of 75% loan to value with either of these products, so if you get your $325,000 appraisal, plan on a $243,750 cash out. You can find 80% LTV products out there but I've found the higher rate to be rather prohibitive.
@Andrew Kiel I haven't maxed out my 10 conventional loans. I ran into debt-to-income ratio issues. DSCR sounds like the way to go.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Chad Davis:
@Matt Wells DSCR may be a fit for you but knowing more details will certainly help. Sent PM
@Chad Davis What do you need to know?
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
Quote from @Jay Hurst:
Quote from @Matt Wells:
I don't qualify for any more conventional loans so now I need to go the commercial route. Does anyone have any advice? Should I go for a 5-year ARM, or DSCR, or try to get a long-term ARM or DSCR loan? Are there any other loan types I should look at? The investment property is a duplex. I paid for it with a LOC and am looking to refinance it into a loan. I put around $260,000 into it and it should appraise for $325,000. I want to get a loan for $260,000 to pay off my line of credit. The property is located in Louisville, KY, and has tenants bringing in $2,300 per month. I intend to hold the property long-term. Please, any advice would help!
@Matt Wells The first question is WHY can you not qualify for a conventional loan? Credit? Debt to income? seasoning for value? already have 10 financed properties? something else?
@Jay Hurst I don't qualify because of my debt to income ratio.
Post: Can't get a conventional 30 year loan. Should I get an ARM, DSCR, or other option?
- Posts 125
- Votes 17
I don't qualify for any more conventional loans so now I need to go the commercial route. Does anyone have any advice? Should I go for a 5-year ARM, or DSCR, or try to get a long-term ARM or DSCR loan? Are there any other loan types I should look at? The investment property is a duplex. I paid for it with a LOC and am looking to refinance it into a loan. I put around $260,000 into it and it should appraise for $325,000. I want to get a loan for $260,000 to pay off my line of credit. The property is located in Louisville, KY, and has tenants bringing in $2,300 per month. I intend to hold the property long-term. Please, any advice would help!