I'm seeing a lot of variation in DSCR requirements across my lender pool. Some are requiring 1.25x, others are fine with 1.0x, and a few will go below 1.0x with compensating factors. What are you all seeing? And for below-1.0x DSCR deals, what compensating factors actually move the needle?
First time dealing with a property in a FEMA flood zone (Zone AE). The borrower wants a DSCR loan. I know flood insurance is required but I'm not sure what else this affects. Do lenders have special requirements for flood zone properties?
I have several borrowers with STR (short-term rental) properties who want DSCR loans. The challenge is that most lenders want to use long-term market rent for DSCR calculation, which kills the deal because STR income is 2-3x higher. Are there lenders who will use actual STR income (AirDNA data, historical statements) for DSCR calculation?
I have a borrower who wants to buy a rental property in a newly formed LLC. The LLC has no operating history. Most DSCR lenders I've talked to want 2 years of LLC history. Are there lenders who will do DSCR loans for new LLCs if the individual borrower has strong credit and experience?