Scenario
A determined real estate investor set sights on a Single-family property in Setauket, NY, priced at $500,000. Despite the property’s potential, it had three open violations, which presented significant hurdles during the financing process. The borrower, with a loan request of $350,000 (70% LTV), was concerned that these violations might derail the transaction.
Backed by a strong financial profile, including six months of reserves and the property generating steady rental income, the investor sought a DSCR loan to expand their portfolio. They were determined to move forward despite the property’s challenges.
Non-QM Solution
Through strategic coordination and persistence, our team successfully secured an exception to address the open violations. Using the DSCR loan structure, the focus was placed on the property’s rental cash flow rather than the borrower’s personal income or DTI.
With a loan amount of $350,000, 70% LTV, and a creditworthy borrower, the deal closed seamlessly. Even with the violations, the property transfer was successfully completed, demonstrating the flexibility and practicality of DSCR loans.
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