All Forum Posts by: Stephanie P.

Licensed or not, @Siouxzie Hanes, you should get the pricing and fees (they are separate) in writing.  Being careful doesn't just apply to the great "unlicensed".  Plenty of licensed loan originators, brokers and lenders didn't honor pricing they had promised to their borrowers in the last couple of months; same with unlicensed.  Unfortunately, when the market moves hard like it just did, no one is safe.

Stephanie

RESPA violations are real and as such have real consequences. If the OP has the intent to occupy the property from the get go and a broker originates a DSCR loan for them, there are heavy penalties, not just prison for mortgage fraud, but restitution to the lender they defrauded and loss of their livelihood.

Advice for the OP, if you're going to get a DSCR loan, go rent an apartment and show that you're living somewhere else and don't move into the property. Have the apartment close to the subject property and treat it like a business. You're getting what is defined as a "business purpose" loan and it should stay that way.

Stephanie

 @Kevin Romines, what's the rule on titling in an LLC? I think you just did a post on it a week or so ago?

@Samuel W.

You'll have to have 12 months of AirBnB data to use that as a rental amount or you'll be forced to use the lower of the lease amount or the number on the appraisal, so renovating and rehoming the current tenants would be the smartest thing in my opinion.  Definitely only have a 1 year prepay so you can refinance into a longer term vehicle and I do like the interest only 40 year options on these.  If cash flow is your goal, that would be the best way to go.

All the best

Stephanie

Mixed reviews lately.  I think they got caught with a bunch of loans that were priced too low with some inexperienced LO's causing some bad reviews.  Not uncommon this past February and March.  Not a bad company though. A solid competitor.

Velocity won't do these loans long term because they're too small. 75K is their minimum.  Also, they require a minimum 1 year prepay; you can't buy it out completely.  Their cost to buy the prepay down 1 year is .25 to the rate or the fee.  To buy a 5 year prepay down to a 1 year would be 2 to the rate or 2 to the fees.  Not sure if it's worth it.  Their short term loans don't have prepays, but I don't think that's what the OP wanted.

@Jake Rader

If the properties cash flow really well, then the difference between a 6% rate and a 7.5% rate shouldn't dissuade you from a DSCR loan at those loan sizes. It's less than a hundred dollars. To be stuck in the 7's or stuck in the 6's on a property that's making you money is not a bad thing. if the value is 80K, your options for DSCR are very limited. A 60K loan amount at 6% is $360 per month on a 30 year and at 7.5% it's $420. Hardly noticeable with guaranteed rents on a Section 8.

I wouldn't buy them thinking rates are going to come down any time soon.  We've been at the low of the cycle for a while and with inflation and a possible recession rearing its ugly head (particularly in upstate New York), you won't see a decrease in rates for the next 8-10 years.

One girl's opinion

Stephanie

90% does not exist for DSCR

Attention:

If you're receiving vouchers for rents in DC, you may want to make your voice heard.

"The DCHA is quietly proposing sweeping rent reductions (of up to 52%) without the knowledge of most private subsidized housing providers. Their mechanisms for doing so will substantially upset not only LL's abilities to afford their investments, but also for tenants to find suitable housing in diverse areas, or to even be able to reside in their current housing. This will affect the approx. 19,000 units that are offered by private LL's to subsidized housing recipients in DC. If you are interested in this topic, please consider taking a look at the information in the link below, and signing the petition.https://chng.it/WwtGyFCmIf you are interested in learning more about DCHA's proposal, you can go to their most recent board meeting and jump to minute mark 44:00, here:https://www.facebook.com/watch/live/?ref=watch_permalink...If you follow along, with a calculator, and try to cross reference any of the math yourself, you will find that none of it adds up, and there are discrepancies of up to 10s of millions of dollars."

https://www.facebook.com/group...

@Zachary Carver

DSCR lenders can go below the normal 1.0, but usually there's an LTV hit.

Lots of variables to determine where your loan will go; ltv, loan amount, rate, rents and guarantor's credit to name a few.