Low Credit Score

[Ollie K Scott]

DSCR RENTAL LOAN PROGRAM!
Fico: 620 + (Lender likes to see a mid fico score of 620+. On a case-by-case basis they can sometimes lend if the borrowers mid fico score is under that but LTV is limited to 50%)
Loan Terms: Amortized for 15 of 30 years. 5, 7, 10 & 30-year fixed options. Lender also offers an interest only option if the borrower wants that.
Loan Size: $60,000- $1.5 Million. (Larger loans are considered on a case-by-case basis). Loan amounts over 1M require two appraisals.
Min. Property Value: $85,750
Max LTV: 75%.75% on refinance cash out deals for 1-4 unit investment properties. 65% max LTV on non-warrantable condos. Lender can actually go up to an 85% LTV if the loan amount is under $750,000 and mid fico score is 740+. Loans under 100k, max LTV is 70%. Mixed Use and MF properties max LTV is 70%.
Debt Service Ratio: 1.0 +
Interest Rate: 5.25%+. Best interest rates are for mid fico scores 740+.
Property Types: Multifamily (5-20 units), Mixed-use (must be 67% residential) & 1-4 unit investment properties. Can lend on warrantable and non-warrantable condos; 65% max LTV on non-warrantable condos. Property must be a C4 condition or better. Property cannot have more than $5,000 of deferred maintenance.
Pre-Payment Penalty: 3%, 2%, 1%.
Use of Funds: Purchase, Refinance, Cash-Out Refinance
Seasoning Requirement: 6 months on a refinance.
Asset verification: 2 months of bank statements. 3-12 months of PITIA payments depending on loan amount, borrower credit, and past credit issues.
Territory: Nationwide except ND, Vermont, Utah, NV, Idaho.
Lender Fee: 1.5 points & $1195 processing fee. Appraisal is upfront
Special: Lender allows the borrower to close in their company name or personal name. Right now this lender does not blanket multiple properties into one loan. There is no limit to number of loans one borrower can have with this lender! For 1-4 unit investment properties the lender can go off of the local market rents.
Foreign Nationals: Can lend but LTV is capped at 65%. Must have US entity. Has to have a valid passport, US Visa, have to have assets in a US Bank Account that total 12 months of reserves (mortgage payments).
Borrower Experience: Borrower must own their primary home.
Closing Time Frame: 30-45 days
Required Loan Docs: Lender loan application, copy of current leases, entity docs, 2 forms of ID, Purchase Agreement or Pay Off, Insurance (must have 6 months rent loss coverage), Title documents, etc.