All Forum Posts by: Nick Belsky

@Marshall Sherwood

Appraisals are a bottleneck across most of the country right now. You could try different lenders who have different AMCs, but that could add complications as well. 2 weeks turn time for the bank isn't too bad. Many are faster, many are slower.

Nick

@Jon Kelly I am with you about increased rents and value. Especially if you are financing with Debt Service Coverage Ratio (DSCR) loans. Higher cash flows strengthens the deal. Banks will follow the Fair Market Rents determined by an appraiser. The appraiser will use comp, condition, and history to determine.

@Karl Teshima

Tall order you have here in the current market. May have better luck looking on the outskirts of the metroplex in cities like Weatherford, Cleburne, Waxahatchie, etc...

Like others have said, off market is probably your best bet right now.

Nick

@Jane Kai are you buying the rate down? $10k seems high to me on that amount...

@Joan Sambo

Many are correct here. It's a lender policy not an FHA guideline. Give another lender a call, or several.

@Reuel Li

I am a mortgage broker and I have a lender whom can do a DSCR loan on up to 8 units in Texas. Max 70% LTV. Rates are running just under 7% at par, could be lower based on your profile. I can get you more details. Thanks!

Willy,

Interesting points of views here.  I am a mortgage broker in Texas.  Several very valid points from the responses above:

Brokers have an advantage by working with multiple lenders, meaning we do the shopping around for you

We cannot not, nor anyone else can, claim the best rates.  We are very competitive, as are others.

I will not agree that the lowest rate is the best loan.  Often times, a borrower can take an 1/8th higher rate and get lender credit to help cover fees and closing costs.  This is beneficial upfront but only for a few years into the loan when IR then takes over and begins to actually cost you more... all ~$27/month more...

Every broker is different.  We are very transparent with our comp plan and how we get paid.  We charge the lender 2.25%.  This will result in an increase in the rate they offer the borrower as a way to recover some of those costs.  90% of our loans are done as lender paid.  The borrower does not directly pay us.  Most brokers will NOT tell you their comp plan.  That's one big way we are different.

Any government backed loan (Fannie, Freddie, and Ginnie) are subject to sale on the secondary markets, in fact, you can bet they will get sold.  Regardless of whether you are a broker or not, government loans will likely get sold unless you are borrowing from a loan servicer, even then, they may still sell it.

We offer white glove customer service as well.  I am the central point of contact throughout your loan journey.  App to Funding.  You wouldn't get passed from person to person.  I do what I do to make your journey as stress free as possible and ensure you are getting the best loan for your situation.  If I can't offer that loan, I will tell you.

Hope that offers another point of view to your questions.  One thing is for sure.  Shop around and ask lots of questions.  Rate is not everything.

Nick

@Allen McGlashing

I can't lend in Ohio but I have a mortgage broker in Dayton who specializes with investment properties. PM me and I'll give you his info.

Nick Belsky

@Jason Barton

I am a mortgage broker in Texas and have access to several lenders whom do DSCR loans.

In a nutshell:

Income, Employment, and DTI aren't a factor.

It's all about the property, your cash down, and credit worthiness.

The DSCR calculation is generally NOI/PITIA = DSCR

Some lenders will go as low as .75% DSCR but will want more money down. 1.00% is the standard, some drop rate is over 1.25%.

I've learned there are many different nuances in the UW requirements for these loans based on each other. No two programs are the same.

How that gives some insight.

Nick Belsky

@Eric W.

I am a mortgage broker in Texas and have access to all kinds of funding options. Reach out and we see if we have what you are looking for. We have several lenders who specialize in Streamline IRRRLs.

Nick Belsky