All Forum Posts by: Nicholas Covington

You could just go for a DSCR loan program that doesn't look at DTI or personal income. Would just go by the projected rents from the property and your credit score pretty much. Will need between 20-25% to put down but seems you might be doing that anyways. Rates are about the same as a conventional loan right now on investment properties.

Are the properties atleast worth 75-100k?

My comment regarding downpayment was a general statement about having a "low" credit score. If you are doing 10% down at a 580 credit score sign me up.

Depends on the loan type/program. DSCR no-income loans are considered "business purpose" in nature and thus the lender requires the funds to be used for "business purposes." You can take that as you want as you just normally sign a form stating that is how the funds will be used.

This money can normally be put into your personal bank account though as you still have full rights to access it as the personal guarantor. 

If you are doing a traditional loan option, they normally require the property to come out of the LLC and close in your name anyway. So at that point, you are just free to use the funds as you want.

I will say either option, no one is calling you afterward and demanding proof of how you spent the money.

Non-QM is generally geared towards primary residences. But once you go that path if you have a low score, you will need a hefty downpayment like 20-25%+ if they are below the 650s. Considering FHA goes down to 580 or even lower and they didn't go that route, that leaves me to believe they will need a good chunk of money to put down.

Obviously, I don't know what money they have in the bank, but wanted to through that out there so no one is wasting their time. Non-QM is for alternative income types, not for "low credit."

Are the property values at least 75k? If so then there are options down to 50k but anything less than that you are likely going to have a tough time.

Hey Miguel,

Are you looking for short-term financing for fix and flip or you buying a turn-key property and looking for long-term?

Might be easier to get them done on separate loans since they are 1-4 units. I sent you a message as well.

What FHA rental restrictions are you referring to? Are you living in the property, if so then that is generally the only requirement that FHA would impose. They cannot tell you what to do with the extra rooms/doors in your home.

What are the actual units per building?