Underwriting?
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Underwriting? (by Lisa [PA]) Jun 11, 2025 11:03 AM
       Underwriting? (by Ray-N-Pa [PA]) Jun 11, 2025 11:42 AM
       Underwriting? (by WMH [NC]) Jun 11, 2025 12:13 PM
       Underwriting? (by Dodge [PA]) Jun 11, 2025 2:17 PM
       Underwriting? (by zero [IN]) Jun 12, 2025 8:46 AM

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Underwriting? (by Lisa [PA]) Posted on: Jun 11, 2025 11:03 AM
Message:

We haven’t purchased property for awhile that is multi-family. We looked into underwriting for a property that we were interested in. Rate wasn’t horrible but the DSCR looked really good! Then I realized that the expenses were not entered properly! The agent said that they do not consider operating expenses when underwriting a loan DSCR for a property 1-4 units in size. How does that work? Has anyone ever successfully used this type of loan? They wanted 25% down. #stilllearning

--172.226.xxx.xxx




Underwriting? (by Ray-N-Pa [PA]) Posted on: Jun 11, 2025 11:42 AM
Message:

I was very close to pulling the trigger on my first DSCR loan about three months ago. The rate was about 1/2 point under the commercial loan rates. They even offered a longer term, but what they really didn't tell me was the TRUE cost of these funds.

My loan was a small $85,000 note. With the bank, that loan rate was 7.25% as compared to 6.85% with DSCR. Cost to close with the bank, was $680 where the total closing cost were almost $6,000. Pay attention to the total cost to close. What the broker told me with the DSCR was I only charge you 2% for the loan. They forget to mention about the other cost on top of that.

The DSCR underwriting wasn't that hard at least initially. My bank knows me and under writing is also not that hard. --98.17.xx.x




Underwriting? (by WMH [NC]) Posted on: Jun 11, 2025 12:13 PM
Message:

What do they call operating expenses? --72.82.xx.xx




Underwriting? (by Dodge [PA]) Posted on: Jun 11, 2025 2:17 PM
Message:

I was thinking of doing some DSCR loans but the total fees made it too expensive. Like ridiculously expensive. --174.219.xx.xxx




Underwriting? (by zero [IN]) Posted on: Jun 12, 2025 8:46 AM
Message:

They sure make it sound promising.

But then again if it seems too good to be true... --107.147.xx.xx



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