All Forum Posts by: Stephanie P.

Are there any type of rehab loans or rehab/mortgage loans that I could take out if I have a 20-40% down payment?

HMLs seem to want experience and I don’t have enough to buy 100% cash.

Visio Lending will consider STR projections. However, they also have a strong preference for experienced STR investors. You also need excellent credit. There is also a 5 year buy back penalty if you do not keep the loan for at least 5 years.

For any conventional/non-QM brokers and lenders - if you do a full suite of products for investment properties, I'm curious to know how many deals start as conventional / or non-QM non-DSCR (such as Bank Statement, Asset Depletion, etc.) but then hits a snag in qualification and then moves/qualifies as DSCR (instead of deal getting completely canceled). Do a lot of the borrowers that miss qualifying at underwriting end up switching to a DSCR loan or is that portion just ended up canceling the deal?

Also curious if there have been any changes in the above answers in the current climate vs. last year etc

With regard to scaling, they are not reported to the bureaus (at least the products I am familiar with are not). So if you are running into problems with taking out loans in your name this solves that problem. If you are to the point where you are feeling the effects of too many personal loans, you will start seeing the ability to qualify with a conventional product becoming more difficult. You will take a hit on the rate if you can get a loan at all, I saw it recently (6 personal loans in 1 year and the borrower couldn't get the 7th.) 

They are more aligned with fed action and the secondary market, so DSCR will follow rate trends. They are very more dependent on leverage and your credit score. Hope this helps!

Does DSCR require the property to have tenants already to qualify for the 1.25 ratio? I'm thinking about using a HELOC to acquire the property and then refinance to pay back the balance. Can I refinance to a DSCR loan? Does the DSCR rate less than HELOC rate, mine is prime + 0.75% (5.5% as of today)?

As others have suggested, your best bet is to get a few more opinions from other banks and credit unions.

Jack makes point about the cash reserves though. If you don't have any cash reserves, the bank isn't going to give you a loan on an investment property (which is a good thing)

OK so just to start off, I have had several set back when it come to money raising process to purchase a home (I'm still renting). I hear about two options when it comes to who to get a loan from if I get approved. One is naca, I have been to their seminar about two years ago and it's always been interesting to me but never acted upon. Two is divvy, my wife's choice of who to go through for home buying. Realistically I want a multifamily to start and grow with but as everyone know it's pretty scarce out there. I would appreciate if anyone has ever used any of the two and if the can give me some insights on them. I really am thankful and looking forward to your responses.

Any thoughts out there?

I have a W2 job, greater than 800 credit score and only 2 mortgages. I was looking to get pre approved on a mult family today and the bank will not approve. Im using a HELOC for the down payment, which is 25%. They indicated my debt was too high. How do I go about getting this multi that I am interested in ?

Hi @Edo Y., there are a few products that might fit your scenario.

1. Net rent. This is for clients that do not qualify because they have other rental properties that hurt them on their Schedule E. It takes a more investor-friendly approach to calculate income. It generally has better rates than DSCR but higher than conventional.

2. DSCR. This is where you are qualified based on the income generated by the property. Not your personal income.

As for a small, local bank, they might have different products that are more well-suited to you. Unfortunately, I do not have any referrals in Weehawken, NJ.

DSCR is only about 1% higher in rate than conventional (less so with perfect credit) so even with that option, you would not be dramatically more expensive than it currently is.

Hope this helps! Let me know if I can be of any assistance.

So I've been researching seller concessions, either closing costs, or paid points. 

It appears at 10% down, max seller can do is 3% on Fanny Freddy loans. 

I am curious if there would be any creative work arounds?  Is it the full amount a seller can comp, or is that just the closing costs limit and seller can do other things? 

Ie say I want a home backup generator, or central air installed and offer is contingent on that. I would imagine most sellers would just comp the value. Does that eat into the max the seller could do?