Dianne Burnett
Commercial Mortgage LenderForum Replies Created
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You should get your score up first. how high is the score now
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We offer all types of residential and commercial real estate loans, especially DSCR loans. For example, one of our niche loans does not require the property to DSCR and requires no bank statement, taxes, or income. These are our construction ground-up loans for 1 – 4 units up to $6mm. Any spec home builder can get a loan with them paying 25% down on the lot, and we will loan up to 100% on the vertical as long as we are under 85% to cost and under 80% LTV on the finished loan. Additionally, our Hard Money Loan requires No income nor DSCR either, the LTV goes as high as 75%. Most are 65% LTV. In Utah and Idaho, we lend 75% LTV with no credit pull, income, or assets on any non-owner-occupied property in a metro area, up to $2.5mm.
One of the problems in Investor Real Estate Lending is determining if you have a CRE (commercial real estate) deal or a house rental when a house is used as a commercial Biz. If the house is in a residential neighborhood and it looks like a house, and if that commercial biz leaves, it remains a house, it’s a house, and it will be getting a 1004 appraisal with a 1007 rental market supplement that gives me a new monthly rent amount as a house. That amount will be used if it’s lower than the current rent to determine the DSCR. I spoke to a loan officer, and there’s always a learning curve. This scenario is a cash-out refi, and he does not know the loan amount, LTV, credit score, zoning, lease term, credit scores, how long the house has been owned, or the price paid. The loan officer has us experiencing a common complexed situation. I’ll post a form here that he and anyone else can use to gather all pertinent INFORMATION to price and place your loans.
The loan officer has an additional issue that he will need to determine. Some houses have been rezoned commercial, you will find these usually along main streets where businesses are comingled. However, suppose this house is in a residentially zoned neighborhood. In that case, it’s a residential house, or it could be commercial in a commercial or mixed-use zone, using a permitted or conditional use permit. If commercial, another type of appraisal is used, and other types of loans are offered. All of these answers will determine the type of loan we will offer, along with its term, penalties, and rate, and if we can use the rental agreement VS the rental appraisal supplement 1007 (the appraiser will also perform a rental market analysis report called 1007 if a 1004 appraisal is used). I asked for the long-term lease agreement for the state-certified daycare, this is additionally important to know. This information determines how we will see the house classified and what type of loan will be offered. Just because the lease is in place does not mean that the lease amount will be used to calculate the DSCR because 1007 will also give a rental monthly amount number, and the lower of the two will be used to determine the DSCR.
If this is a house with a conditional use permit, I could require a rebuild letter from the city or county, and The DSCR would go off the Appraisal rental supplement is lower than the current lease being paid.Please note that CRE DSCR (the debt service coverage ratio) is net operating income divided by total debt service.
- This reply was modified 1 year, 7 months ago by Gustan Cho.
- This reply was modified 1 year, 7 months ago by Gustan Cho.
- This reply was modified 1 year, 7 months ago by Gustan Cho.
- This reply was modified 1 year, 7 months ago by Sapna Sharma.
- This reply was modified 4 months, 3 weeks ago by Ravinder Sharma.
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you’ve really got to be committed in doing what it takes. We have articles about boosting your credit I’ll have to paste an article here. in s few hours