All Forum Posts by: Stacy Raskin

 Sure, you're welcome. If you rent it out, most lenders will use the actual rents unless the appraiser 1007 market rent schedule is lower, they will use that. Some lenders are more flexible on this.

Another option is to use AirDNA to structure if in an area with short term rental potential. Programs vary by lender but if a purchase, some lenders will take 80% of the projected annual revenue and divide it by 12 to get the monthly rent. They will also need a 1.2 DSCR ratio. An easy math example is $1K in expenses (mortgage, property taxes and insurance (and HOA if applicable)) to be covered by $1,200 in rent. There are other programs for 2-4 units that will use 75% of the AirDNA rents. More details to cover for the programs that are not explained here (or this would be an ultra long post since the guidelines are a couple pages : ) so best to go over with a brief call.

@Rogelio Andres Jimenez, 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. These can be used for purchases, rate and term refinances (where you don't take cash out) or cash out refinances.

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

1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

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? Is your DSCR ratio greater than 1-meaning are you cash flowing. 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.

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

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.

@Ethan Hansen, we specialize in DSCR loans and as a broker we work with multiple lenders to get you the best possible program and terms so you aren't stuck with just one lender's products, rates and terms. I'd be happy to discuss further to see what would be helpful for you to help you reach your investment goals.

In case helpful- 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+ generally gets best pricing for investment property loans with most lenders

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? Is your DSCR ratio greater than 1-meaning are you cash flowing. 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.

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

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.

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 not off of your personal income.

More details:

• Loans available for purchase, cash-out and rate & term refinance
• 85% LTV for single family purchase only with a minimum middle credit score of 720. Purchase price up to $1.5M.
• Loan amounts up to $1,500,000. Minimum loan amount $100,000.
• LTV are up to 75% for cash out.
• Non-warrantable condos and condotels permitted.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Single family home purchases that will be short term rentals can be structured off of AirDNA with a 20% expense factor- for this program only no first time investors. For this product only DSCR ratio must be 1.2 or above. An example for easy math, is the rent would have to be $1,200 or above if the mortgage, property taxes and insurance (and HOA if applicable) would be $1,000 or below.
• Additional program for 2-4 units can be structured off of short term rentals with additional requirements. Minimum 700 credit score, 25% minimum down payment with 1 year short term rental history required. 30% down payment is required with no short term rental history. Minimum 1.25 DSCR based on AirDNA rentalizer. Please contact for additional details.
• Qualify on Interest Only payment which is great for cash flow. 10 year interest only payments converting to 30 years principal and interest. Fully amortized fixed interest loan.

I work on DSCR loans in all U.S. states except for Arizona, Idaho, Iowa, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota and Utah. There are different products available depending on the state. Please inquire. I look forward to hearing from you.

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.

More details:

• Loans available for cash-out
• Credits score down to 620
• 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.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or 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.
• Inquire for additional details.

I work on DSCR loans in all U.S. states except for Arizona, Idaho, Iowa, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota and Utah. I look forward to hearing from you.

There are some lenders that do both fix and flip financing and also DSCR loans. In that case, no seasoning or waiting to refinance to the long term loan such as a DSCR loan. If different lenders, many will require a 6 month seasoning period from when you purchased the property to rehab.

I'm a mortgage broker that does residential and investment property loans in Florida- happy to connect. 

You're better off using a mortgage broker. They will shop your loan to different wholesale lenders to get you the best loan program. That you aren't stuck with one lender's programs and rates. 

If it's a single family home for investment, there are programs that have 15% down with a middle credit score of at 720 and above. It has to have a DSCR ratio of at least 1.2. Which means, (for the sake of simple math), the rent would have to be at least $1,200 and the mortgage, property insurance, taxes (and HOA if applicable) would need to be $1,000 or less.

There are 20% down programs for middle credit scores of 680 or above with a DSCR 1 ratio which means if the monthly rent is $1,000, the expenses have to be $1,000 or less.

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. They don't consider borrower income.

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

1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

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. Are you cash flowing the property? Is your DSCR ratio greater than 1-meaning are you cash flowing. 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.

Market rents from the appraisal and/or the actual rents need to cover the mortgage payment, property insurance, taxes and HOA (if applicable).

4. Prepayment penalties range from 1-5 years and you get to decide the length of the term. The longer the term, the less of an impact on the rate.

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 = $2200Rent = $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

DSCR loans can be used for purchases, rate and term refinances (to lower your interest rate) and for cash out refinances. Most lenders allow you to vest individually or as an LLC.

Are the other two vacant units cosmetic remodels or full gut jobs- are they currently habitable?

Also, is the retail building currently rented? 

Depending on that, a bridge loan would be helpful or potentially a longer term refi product depending on the condition of the units and current rents. 

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.

More details:

• Loans available for cash-out
• Credits score down to 620
• 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.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or 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.
• Inquire for additional details. 

I work on DSCR loans in all U.S. states except for Arizona, Idaho, Iowa, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota and Utah. I look forward to hearing from you.