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All Forum Posts by: Yael Maroko

Yael Maroko has started 4 posts and replied 25 times.

Quote from @Tarik Turner:
Be sure to let the lender know prior to the appraisal, what needs to be repaired on the property. Would hate for you to apply for a 30 year mortgage then there is an issue that your lender feels should be repaired prior to closing.
Usually if you are talking about light items .. (paint. carpet, new appliances) You should be fine if it is more substantial than light work -(roof patchwork, mechanical damage ) you might want to work it out with the seller to get it repaired prior to purchasing. Nothing worse than paying for an appraisal that cannot be used to fund the loan especially when the issues could have been identified beforehand. 

 Yes, good point. I do intend to buy a rent ready property, but I might find one which does require roof repairs, or other things that need more substantial attention.

If that would be the case I will use HML and after the repairs I will refinance .

Yael 

Quote from @Erik Estrada:
Quote from @Yael Maroko:

Hi,

Can I get a DSCR loan on an investment property at the time that I'm buying it even before its rented?

Lets say its an easy rehab and its vacant, the ARV won't be that much higher than the price I will pay at closing, will a lender give a 75% DSCR loan? (or maybe its a different type of loan?) With no seasoning? Will they take an average rent in the area to calculate DTI?


 Hey Yael, 

I am a little confused on the question. Are you structuring this as a Refi or Purchase? 

If It's a purchase, and the rehab is only cosmetic, then generally you should be able to purchase the property with a DSCR loan as long as there is no deferred maintenance or structural repairs needed. The property does not have to be rented and market rent will be used to qualify.

If this is a refinance, lenders will want to see at least 3-6 months to cash out on the new appraised value. Since there is not too much variance on the ARV and Original Purchase Price, Most lenders would be able to do a delayed purchase refinance. Some lenders will allow 100% of the purchase price and rehab cost as long as it does not exceed 75% of the appraised value.


 Hi Eric, 

Yes - it is purchase, meaning I will need the money for the closing of the property. If it will need more than a light rehab I will go a different route and use HML for the purchase, do the rehab and then refinance.

My intention is to buy a rent ready home.

Yael

Quote from @Kristen L Garner:

Yes, you can purchase a vacant property using a DSCR loan. The lender will go off of the 1007 page in the appraisal for the rental amount to calculate the DSCR ratio. The 1007 page is similar to the page where they calculate the value of the property, but instead they pull comps and data for rental amounts from similar properties in your area. Most lenders will go up to 80% LTV for a DSCR purchase. Some even go up to 85% but the qualifying guidelines are stricter.

As far as the DSCR ratio you will want to hit 1+ to get the max LTV. If you go under 1 you can still get the deal done but you will likely get a hit in LTV or rate. And if your ratio is above 1.25+ you will likely get a better rate. Best of luck and if you want help running some numbers or seeing what rental comps are in your area, let me know!


 Thanks! Very clear explanation 

That's what I want to avoid.. I want to have the loan at the closing. The down payment will be y own cash

Hi,

Can I get a DSCR loan on an investment property at the time that I'm buying it even before its rented?

Lets say its an easy rehab and its vacant, the ARV won't be that much higher than the price I will pay at closing, will a lender give a 75% DSCR loan? (or maybe its a different type of loan?) With no seasoning? Will they take an average rent in the area to calculate DTI?

Quote from @Marc Walowitz:

Have you considered ordering the appraisal directly so you can re-assign? Of course the lender must be open to accepting it.


 I will certainly do that next time around .

Quote from @Zach Edelman:

If you paid for the report, you own the report, that simple. I'd reach out to the AMC and ask for the report. They should be obligated to give it to you.


 I just got off the phone with them, they need a release letter from the old lender. I will try to get it.. and I will keep sending emails

I have the appraisal report, but the new lender wants to get it from the old one.

I'd rather not do another appraisal since the tenant on the house (its a rental) gave me a hard time.. I'd rather try to get it from the older lender.

The reason I could not go through with them is technical - I would not provide them certain documents regarding my current dwelling (which I was not aware I needed to do with a DSCR loan), I did not start the process with the new lender until I made sure I absolutely need to.

I also paid them for the process 1K which I'm pretty sure I wont get back even though it was clearly mentioned that I will if the loan doesnt go through.

This feels like such a wild market.. every lender has its own rules..its my first time so I'm learning, will never work with another lender before asking ALL the right questions.

But getting my tenant upset again is not something I wish to do.. so I hope a few emails a day will do the trick   

So even though I paid for it - they will not transfer the appraisal? 

Yes, it was done through AMC - and I was sent the payment link - which I paid.

its a DSCR loan, not an FHA. And it is very clear I will not do the loan with them.

I have written them a few times.. I guess I will just keep nagging then