All Forum Posts by: Stephanie P.
Stephanie P. has started 186 posts and replied 4622 times.
Post: DSCR loan With no prepayment penalty
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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- Votes 2,759
Quote from @Michael Baum:
Quote from @Stephanie P.:
Quote from @Michael Baum:
I would be interested to see if lenders will do DSCR loans on a condotel.
Very few do, but most condotels are a non starter for DSCR brokers/lenders
That is what I figured. Seems like cash is the best way to buy one of these, but I don't see them being a decent investment for the long term. Thanks !
I don't have an outlet for condotels, but it seems @Erik Estrada and @Lyndsay Zwirlein may be able to do something with it.
Post: Non QM Bridge Loan
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Mauricio Cuevas:
Hey guys, so i have a 40 unit multi family building I was renovating. I got all the mechanicals inspected and passed. I had to go out the country for a while and long story short my credit plummeted. I'm wondering if its possible to maybe get a loan of the AS-IS value. I own the property free and clear. Thanks for all the advice in advance.
Seems I've seen this post before. Is your score in the 500's?
Post: Financing for Maui
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Mike Morehead:
Hello group- thanks in advance for any and all advice. I am looking for financing for deals on STR's in Maui. Wondering if DSCR is an option or what other creative financing is available in Maui. Margins are tight and I want to make sure I know what options I may have. Thanks again
DSCR in Hawaii in general is hot. You can use the Air DNA data to determine rents for the area as opposed to the traditional long term rents on the appraisal. You should also be able to use a 10 year interest only coupled with a 30 year fixed to help with cash flow. PM with additional questions.
Stephanie
Post: Is 8.875 a good Dscr rate today
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Alex Bekeza:
I know I'm late to this post but as of 02/09/2023 the answer is NO! Assuming a 700 + FICO you should definitely be in the 7s today.
Yes. Rates have certainly dropped from this time last month.
Post: DSCR "Rural" lending
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Stephanie P.:
Quote from @Tanner Johnson:
So I have been having a lot of trouble getting a cash out loan on one of my properties I own outright, and I thought DSCR lending was going to be my saving grace. Well turns out pretty much my entire investing area is considered "rural" even though this specific property is right in the middle of a 30,000 population town and most DSCR lenders will not loan on it because of this. Has anyone ever found a way around this as I really need this to happen if I am going to scale. Conventional lending is not really an option as I am a college student and dont have much W-2 income at this time.
Is this the property that you built with a wooden foundation and what specific town is it in? Curiosity is getting the better of me and I want to check population density.
@Tanner Johnson Just checking in. Did you get a chance to see the questions above?
Post: DSCR loan With no prepayment penalty
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Michael Baum:
I would be interested to see if lenders will do DSCR loans on a condotel.
Very few do, but most condotels are a non starter for DSCR brokers/lenders
Post: No seasoning lenders in Texas
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Eliott Elias:
If you want full LTV you will need to have owned the property for 6 months. Anything under you can pull out 70% LTC.
75% ltv is available at 3 months.
Yes, you're better waiting at least 3 and possibly 6 months. If the numbers work, you can go to 80% ltv at 6 months. PM for additional details if you don't get additional answers on the thread.
Stephanie
Post: Insight on DSCR vs standard commercial cash out refi
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
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Quote from @Jordan Holt:
I am just finishing up a rehab and its about time to get my hard money lender paid back, and get the money I put into the deal back out to rinse and repeat. The property is in my LLC and I am trying to figure out if I want to do a DSCR loan or do a commercial cash out refi. I don't really know much except the very basic things about a DSCR loan. Does it allow me to get cash back? Or just pay off the previous lender?
I am all in (including my own money) about 230K. ARV for this house should be at minimum 300K but the house directly behind it just sold for 375K about 5 months ago. Rent is probably $2,000 but worst case scenario I have no problem knowing that I could get $1800.
thoughts?
You're going to want to explore something at your six month mark of owning the property and you're going to want to explore a 40 year interest only. It appears to me, running the numbers, your rental amount is too low for your loan amount and you're going to come to the table with cash. Spreading the amortization over 40 years can put you where you need to be to make it work.
Stephanie
Post: Credit Checks: Hard Money vs Conventional
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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Quote from @John O'Leary:
@Jay Hurst There is still a guarantor on non-recourse loans. The presence of a guarantor does not change the non-recourse nature of the loan. Even if there is a guarantor, the borrower is not personally liable for the repayment of the loan, and the lender cannot go after the borrower's personal assets in the event of default. The only recourse the lender has is the collateral and, if applicable, the guarantee provided by the guarantor. I'll let any other lender offering non-recourse loans to chine in from here out. Thanks for your insight.
I'll help you out.
If a borrower of a DSCR loan (with a personal guarantee) tries to get conventional financing and the DSCR loan doesn't show up on the credit report but the inquiry does and will need to be addressed, it still goes against the 10 financed properties that are allowed by Fannie Mae/Freddie Mac, it still shows up on Schedule E because they're probably using an LLC which is a pass through entity and it will almost certainly show up on a drive report the next time they try to purchase a property.
MOST DSCR loans being originated today are full recourse with a personal guarantee. If a loan is non-recourse, then there is no personal guarantee meaning if it defaults, the lender takes the property, but if there IS a personal guarantee, the borrower or guarantor is on the hook for the debt.
Hope that clarifies.
Stephanie
Post: Cash Out Refinance Seasonal Period
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
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80% loan to value for cash out is out there, but you have to wait 6 months. Probably worth the wait considering how much cash you'll have to come out of pocket at 75%.
Something to consider.
If it appraised as is at 400K, unless there was a condition adjustment for comparables that were completely renovated in the first appraisal, the appraiser is going to have to find additional 4 unit buildings that were renovated to bump up your appraised value. Possible? Yes. Likely? Not really. They'll probably use the same comps and give an upward adjustment for condition. You may get 50K out of it if you're lucky, but that may be just enough to get you what you need.
Stephanie