All Forum Posts by: Timothy Hero
Timothy Hero has started 25 posts and replied 983 times.
Post: Conventional vs DSCR in 2025
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Quote from @Patrick Roberts:
The points and prepays are where conventional will diverge from DSCR. Most DSCR loans will have 3+ year prepays and usually around a 0.5-1.0 more in points than a comparable conforming loan.
Post: Down payment on DSCR
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I've brokered over 330 DSCR lenders, and every now and then a lender will advertise 85% LTV. The kicker? The rate goes up 50, to sometimes 100 bps.
You're financing more LTV and at a much higher rates. DSCR loans of course are based on cash flow for approval, and I've yet to see a deal cash flow at 85% terms.
Post: Down payment on DSCR
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I've brokered over 330 DSCR lenders, and every now and then a lender will advertise 85% LTV. The kicker? The rate goes up 50, to sometimes 100 bps.
You're financing more LTV and at a much higher rates. DSCR loans of course are based on cash flow for approval, and I've yet to see a deal cash flow at 85% terms.
Post: STR/Vacation property financing
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Quote from @Kerry Baird:
I used Tim Hero as broker on my last STR purchase in the Space Coast of Florida. @Timothy Hero
Dustin, request a quote on my site and I'll have a look: timothyhero.com
Post: DSCR lending expert
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Quote from @David Dachtera:
Quote from @Timothy Hero:
I've brokered over 325 DSCR loans. I can help with the refinance to pull equity out, but no the purchase, as 99% of the industry won't finance mobile homes.
Sorry ... gotta ask a "dumb" question here (I've never looked much into MHPs) ...
Don't the home owners own the mobile homes while the park owner owns the lots and everything else?
What am I missing here?
I can't say much on MHP, since I don't know much about them. I know DSCR lenders typically don't touch them.
Post: How to get the most cash out of my property?
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I've never seen 90% in 7 years of real estate, let alone in a market where the treasuries are at 20-year highs.
Post: DSCR lending expert
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I've brokered over 325 DSCR loans. I can help with the refinance to pull equity out, but no the purchase, as 99% of the industry won't finance mobile homes.
Post: Multi Family DSCR Terms?
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Quote from @Matthew Drouin:
@Timothy Hero community banks and credit unions are the OG DSCR lenders. DSCR recently came popular in the loan brokerage and private credit space with the rise of STRs and MTRs.
Your local bank lenders will have the best rates typically. I had a couple clients lock in just recently at 7.1% on 10-30 unit deals.
Yeah, after brokering 300+ DSCR loans, I'm finding they are good for 1-4 units mainly. Sometimes a 5-10 unit DSCR loan is solid terms, but I'm quoting 7.4% ish for 5+ unit, DSCR.
Post: Tapping into equity on my property that is under an LLC
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Having brokered over 320 DSCR loans, I may be biased, but go DSCR, lol.
Post: Multi Family DSCR Terms?
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The last 12-18 months have been a little rocky in the DSCR space for 5+ units. I find DSCR most lenders are 8 to even 9% for max leverage on 5+ right now. I know of a lender around 7.3%, but curious what everyone else is seeing.
Keep in mind, we're talking DSCR, not conventional.