Vesting a Property in an LLC
DSCR loans for Multi-Family properties continue to be sought after and often asked about by both new and existing customers. While inventory levels may not be as numerous as Single-Family properties, the fact that there are multiple tenants with multiple rents created by a single purchase transaction has both short and long-term appeal.
- DSCR can only be used for investment properties. A DSCR loan cannot be used if you intend on occupying a unit for your primary residence, even though your intentions may be to rent other units. If you intend on occupying one of the units as your residence, other financing options are available as these transactions fall under a Primary Residence. As a Primary Residence, traditional Mortgage programs such as Fannie Mae, Freddie Mac, FHA, and VA do allow for the purchase of 2-4 unit properties. We also offer our Flex Line of products when traditional loans are not possible.
- For investment properties, a 2 to 4-unit property utilizes our Standard DSCR guidelines with no LTV reductions or increased reserve requirements for being a Multi-Family.
- As with all DSCR loans, all units must be in rent-ready condition prior to closing.
- If the property was originally a Single-Family and converted to a multi-unit, proper permits and any state and local requirements must have been met.
