All Forum Posts by: Stacy Raskin

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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, North & South Dakota, Oregon, Utah & Vermont. I look forward to hearing from you.

Fix & Flip Loans-Financing up to 90% of Purchase Price & 100% Rehab- Up to 75% of ARV

As a mortgage broker, I work with different lenders that do Fix & Flip loans. The programs are created for investors who buy distressed homes, repairing them and then either selling them or holding them for rental income and flipping the hard money loan to a long term DSCR loan where the rents will underwrite the loan.

Program highlights:

• -Any level of investor experience
• -Funding in as little as 10 days
• -Credit scores as low as 640
• -Non-owner occupied Single Family, Multi Family up to 4 units property types
• -Purchase Loan Amount – up to 90% of Cost
• -Rehab Loan Amount – up to 100% of Cost
• -75% maximum after repair value
• -12 to 24 month loan term with Interest Only payments. At the end of term, can either sell or refinance into a longer term fixed DSCR rental property loan. This can be done earlier as well if the property is ready before the term is up.
  -Decisions and term sheets are issued quickly. Terms will depend mainly on borrower's credit score and location of property. Experience is a factor but is secondary to the other criteria. Loans offered in all U.S. states except for Idaho, Iowa, North Dakota, South Dakota and Utah.

There are more lending options in: AZ, Washington D.C., AR, AL, CA, CO, CT, FL, GA, IL, IN, KS, KY, MA, MD, MI, MN, MO, NC, NJ, NV, NY, OH, OK, OR, PA, SC, TN, TX, VA, WA, WI, and WV.

Get Cash Out of Your Investment Property with no Personal Income Needed for the Loan

0.5% off of the rate for loans submitted 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 or use the special for savings to purchase an investment property.

More details:

• Loans available for cash-out
• Credits score down to 620 (for loans under $100K, middle mortgage credit score is 680)
• 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 pricing special, I work on DSCR loans in all U.S. states except for Alaska, Minnesota, Arizona, Nevada, North & South Dakota, Idaho, Illinois, New Jersey, Vermont, New York, Virginia, Wyoming, Oregon and Utah.

Get cash out of your investment property, primary or second home easily

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.

There are lenders that will lend to foreign nationals for DSCR loans for investment properties. There are some who will do 25% down for a single family residence and 30% down for 2-4 units. Typically 6 months of reserves are needed (meaning 6 months of mortgage, property taxes and insurance (and HOA if applicable)). They will also require an unexpired passport and bank documents converted to English if not already in the language and foreign currency converted to U.S. dollars. They don't require an LLC. This is for people living outside the U.S. There are other programs for people living in the U.S.

More on DSCR loans: 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. 

Lenders have a minimum loan amount for investment property financing depending on the lender and whether conventional or DSCR. Some DSCR lenders will go down to a $75K value and a $55K loan amount. It's the same work to do a $55K loan as a $500K loan so the fees will be higher due to the loan amount but will still be much lower than what a lender or broker gets paid on a higher loan amount.

More info on DSCR loans in case helpful: 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.

Some DSCR lenders will go down to a $75K appraised value and a $55K loan amount. More info on DSCR loans:

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 discuss further. 

There are investment property HELOCs. There are investors who like that they can do multiple draws and some features which are specific to HELOCs compared to a cash out refinance. HELOC rates will be higher than a cash out refinance. These are also income based loan so the debt to income (DTI) ratio has to work.

More details:

There are lenders that do values determined by AVM (automated valuation model), not a full appraisal. They can do HELOCs down to 640 for primary homes and 680 for investment properties, combined loan to value (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.

There are 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.

Happy to discuss further. 

Since it's an investment property a DSCR loan can be a good option as there are 30 year fixed options and the rents will be used to underwrite the 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. 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.