All Forum Posts by: Stacy Raskin

 Happy to discuss different options. There are different options depending on the state, loan amount, borrower profile among other details. I'll send you a message. 

DSCR must be rent ready or rather when the appraiser does the appraisal he must mark the box that says "as is" and not "subject to" which means that there is no work needed that is health and safety related. If the appraiser marks the "subject to" box then that work that he lists on the appraisal needs to be completed for the loan to fund.

You can start with a hard money loan and flip it to a DSCR / longer term financing if not selling the property after the renovation is complete.

For the ARV, doing a lot of research of similar properties is a good idea. Asking your real estate agent can be helpful too.

Often appraisers come in with a lower appraised value than what is expected by the investor. 

In theory appraisers look are supposed to look at the most recent, closest and most similar sales in comparison your property. 

There are non-QM mortgages such as DSCR loans with no seasoning if you have a 1.15% ratio. For an easy Math example, if you have a $1,150 of rent compared to $1,000 of expenses (considered expenses for DSCR loans for 1-4 units are the mortgage, property taxes and insurance and HOA if applicable), that's a 1.15% ratio.

There are more DSCR options at 3 and 6 months with a DSCR 1 ratio (so for a math example $1,000 of rent to $1,000 of the above expenses or less).

For most DSCR lenders, you don't need the property rented to get a DSCR loan. If vacant, the appraiser will do something called a rent schedule where the appraiser calculates the amount of rent expected to be received. This will be then used to calculate the DSCR ratio.

Happy to connect to discuss further. 

It depends on what works best for your individual situation regarding income and credit. Conventional loans that are underwritten by Fannie Mae or Freddie Mac guidelines will not allow you to use an LLC to buy. These are based on your debt to income / DTI ratios.

Another option is a DSCR loan. DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further. 

There are rehab options where 90% of the purchase price and 100% of the rehab would be covered depending on exact address (lender researches the area) and credit score / borrower profile. There are other lenders who will do less such as 80%. These loans are interest only and you would only be charged interest when you draw funds for rehab. There are 12, 18, and 24 month terms. Most investors choose the 12 month term. You can either sell or flip to long term financing such as a DSCR loan once your finished with the rehab.

Many lenders would like a borrower to have an LLC opened since a business purpose loan. The LLC doesn't have to be opened for any specific period of time.

Happy to connect to discuss further. 

You can do a hard money loan and then either sell the property or convert the hard money loan to long term financing such as a DSCR loan. Hard money loans for 1-4 units have options for up to 90% of the purchase price with 100% of rehab loaned depending on the project, area, and borrower's credit score and borrower profile.

DSCR loans don't consider debt to income ratios and have shorter seasoning periods. Conventional loans are based on DTI and have longer seasoning periods.

DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further. 

Looking to Buy or Refinance a Non Warrantable Condo or Condotel?

Non warrantable condos and condotels that are investment properties can be bought or refinanced with DSCR loans. DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment (if purchase) and market or actual rents.

Purchase, Rate/Term & Refinance Cash-Out loans:

More details:

• Loans available for purchase, rate and term refinance (no cash out) and cash-out refinance
• Credits score down to 620 for non warrantable condos and 640 for condotels
• LTV are up to 75% for purchase and 70% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Loan minimum of $100K
• Rate buydown feature available.
• Ok if under 500 sq foot living space depending on the property and borrower credit score.
• DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.
• For experienced investors (one year of investor experience and own home), short term rentals can be structured off of 12 month short term rental history with 20% expense factor. If a purchase, AirDNA projected rents for the property address with 20% expense factor. Other loan programs don't have home ownership requirement.
• Inquire for additional details.
• I work on condotel DSCR loans in all U.S. states except for Alaska, Minnesota, Michigan, Arizona, Nevada, North & South Dakota, Idaho, Missouri, New Jersey, Vermont, New York, Virginia, Wyoming, Oregon and Utah. For other types of investment properties such as non warrantable condos and 1-4 units, I work on DSCR loans in all states except for Minnesota, Nevada, Arizona, North & South Dakota, Oregon, Utah & Vermont. I look forward to hearing from you.

Get Cash Out of Your Investment Property with no Personal Income Needed for the Loan- No Seasoning Options for Loans of $100,000 and above

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents.

Looking to refinance out of your hard money loan? 

If you aren't looking to get cash out, you can also refinance out of a shorter term hard money loan or any loan to have a fixed 30 year mortgage term potentially saving on monthly interest payments if refinancing out of a hard money loan.

More details:

• Loans available for cash-out
• For 1-4 units (single family rentals to fourplexes)
• Credits score down to 620 (for loans under $100K, middle mortgage credit score is 680). If credit is lower, LTV will be reduced
• For no seasoning period, the minimum DSCR ratio is 1.15 so for an easy math example, $1,150 minimum actual or projected rent would be required against $1,000 of expenses (for this program: mortgage, property taxes and insurance, and HOA if applicable).
• LTV are up to 75% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Non-warrantable condos and condotels permitted for loans above $100K.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Appraisal Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Short term rentals can be structured off of 12 month short term rental history for loans above $100K.
• Fixed 30 year terms or fixed 40 year terms of 10 years of interest only payments followed by 30 years fully amortized for loans above $100K.
• Inquire for additional details.

For the no seasoning period, I work on DSCR loans in all U.S. states except for Arizona, Idaho, Iowa, Michigan, Minnesota, Nevada, North Dakota, South Dakota, Oregon and Utah. This list gets updated- please contact for further information. 

I look forward to hearing from you.

Get Cash Out of Your Investment Property with no Personal Income Needed for the Loan- Pricing Special- 0.25% off for all loans locked in June

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents.

If you aren't looking to get cash out, you can also refinance out of a shorter term hard money loan or any loan to have a fixed 30 year mortgage term with a lower rate.

More details:

• Loans available for cash-out and purchase
• Credits score down to 620 (for loans under $100K, middle mortgage credit score is 680). Minimum $75K appraised value needed for a purchase or refinance.
• LTV are up to 75% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Non-warrantable condos and condotels permitted for loans above $100K.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Appraisal Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Short term rentals can be structured off of 12 month short term rental history for loans above $100K.
• Fixed 30 year terms or fixed 40 year terms of 10 years of interest only payments followed by 30 years fully amortized for loans above $100K.
• Loan options in most states.
• Inquire for additional details.

I look forward to hearing from you.

Get cash out of your investment property, primary or second home easily with online income and property verification

More details:

• Values determined by AVM (automated valuation model), not a full appraisal
• Quick and easy online verification process
• No cash needed at closing except for $150 for states that require an in person notary
• Credits score down to 640 for primary homes and 680 for investment properties
• CLTV are up to 85% for cash out for primary homes and up to 70% for investment properties (max CLTV depends on credit score)
• HELOC maximum line amounts up to $400,000 for primary homes and $250,000 for investment properties (maximum loan to value (LTV) varies based on credit score)
• Only available on one unit properties such as single family residences, condos, planned unit development (PUD) and townhouses.
• Fixed 5-30 year fully amortized loan terms with 2-5 year draw periods. Full draw required at closing. Subsequent draws can be any amount above $500. Additional draw limit is 100% of total line of credit.
• Up to 50% debt to income (DTI). Income can be from earnings or asset depletion. Spousal income can be considered in community property / homestead states. Income verified online through borrower's source of choice such as bank statements, asset accounts, paystubs and IRS tax filing.
• Properties must have been bought at least 90 days ago.
• U.S. citizens or permanent residents. Property must vest as individuals or a revocable trust. LLCs not allowed.
• Fast funding.
• Application must be completed within 14 days.
• Inquire for additional details.

These HELOCs are only for properties located in California or Florida.

I look forward to hearing from you.