All Forum Posts by: Terry Fann

OK would love to help or answer any further questions you may have.    If you find another property and what me to run some numbers for you just reach out anytime.   Good luck! 

 Yes that is possible its called delayed financing.    We do those all the time.    I am in Allen Texas.   I can answer any questions if you need help.   

Yes you can do FHA 203k for this project. 4-unit loan max $2,072,250 in San Diego. you can put down the minimum 3.5% down and finance all renovations into the loan. Message me if you need to look at numbers or need any help. We specialize in renovation loans.

We do 5 - 10 Unit properties  

💡 What is a DSCR Mortgage?

A DSCR (Debt Service Coverage Ratio) mortgage is a type of loan designed specifically for real estate investors. Instead of focusing on your personal income, lenders evaluate the cash flow of the property you're buying or refinancing.

📊 How DSCR is Calculated

The formula is simple:

DSCR = Net Operating Income (NOI) / Debt Service

• A DSCR of 1.0 means the property brings in just enough income to cover the mortgage.
• A DSCR above 1.0 means the property generates more income than needed—great for lenders.
• Most lenders look for a minimum DSCR of 1.2, though some may go lower depending on the deal.

🏘️ Why Investors Love DSCR Loans

• ✅ No personal income verification – perfect for self-employed or full-time investors.
• ✅ Faster approvals – less paperwork, more deals.
• ✅ Scalable – ideal for building a portfolio of cash-flowing properties.

⚠️ Things to Watch Out For

• Higher interest rates than conventional loans
• Larger down payments (often 20–25%)
• Property must cash flow well—no fixer-uppers unless already stabilized

🧠 Pro Tip

Before applying, run your numbers carefully. Use conservative rent estimates and factor in all expenses. A strong DSCR not only gets you approved—it gives you peace of mind.

Have you used a DSCR loan in your investing journey? Share your experience below! 👇

Current Trend Direction:Holding at a critical support levelAdvise Your Clients:For loans closing within two weeks, lock in rates to secure current pricing. For longer-term loans, float but closely monitor key levels with our guidance.Current Price ofFNMA 30-year 6.0%Bond:$100.50,-19bpMMG Daily

Deficit concerns continue to weigh on bond markets, pushing prices down and yields up as both hover near pivotal technical levels.

MMG Minute:

Moody’s warnings about the growing U.S. deficit, combined with the budget bill moving through Congress, are unsettling investors. For years, budget hawks, Fed Chair Powell, and MMG have warned that the U.S. debt burden could pose significant risks. While the long-term outlook remains uncertain, bond markets face short-term pressure.

No economic reports are scheduled today. The Treasury’s 20-year bond auction is unlikely to significantly impact markets, but we’ll keep you updated.

Rising yields are increasing corporate borrowing costs, reducing equity demand and contributing to stock market declines.

Technical Outlook:

The FNMA 30-Year 6.0% bond is holding at a key support level of $100.50—monitor this closely for longer-term lock decisions. The 10-year Treasury yield, currently at 4.53%, has breached critical support at 4.50%.

Recommendation:

Lock rates for loans closing within two weeks. For longer-term loans, continue floating but be prepared to lock if the FNMA bond falls below $100.50.

App Update:

Download the TabrasaOne Mobile app (available on App Store or Google Play) for real-time notifications, videos, and updates, replacing traditional text alerts.

Video Script and Messaging for Clients/Partners on Rates

• Where are rates headed? Upward
• Why? Moody’s downgrade, the budget bill, and fading expectations for near-term Federal Reserve rate cuts.
• What’s next? A quiet week for economic data and Fed commentary.

The Federal Funds Effective Rate (4.25%–4.50%) exceeds the CPI inflation rate (2.4% year-over-year, March 2025). This gap shows the Fed’s tight policy to curb inflation, which is easing. Declining inflation may lead to lower rates and borrowing costs, though tariffs could spur volatility.

The takeaway ... Inflation is moderating, trending downward. As inflation continues to decline, interest rates are expected to follow, leading to lower home borrowing costs.

Hi everyone,

My name is Terry Fann, and I'm thrilled to be a new member of the BiggerPockets community! With 30 years of experience as a mortgage lender at PrimeLending, I've had the privilege of helping clients secure their dream homes and finance investment properties. As a national lender, I have the expertise and resources to assist clients across the country.

I'm passionate about real estate and eager to connect with fellow investors, share insights, and learn from your experiences. Whether you're a seasoned investor or just starting out, I'm here to collaborate and support each other in achieving our investment goals.

Looking forward to engaging with you all and contributing to this fantastic community!

Best regards,
Terry Fann