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David From Cash Flow Rentals Interview Scott About DSCR Loans In The U.S.A.
Manage episode 509330827 series 3574924
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Financing US Real Estate for Canadians & Foreign Investors
Episode Summary
David interviews Scott Dillingham of LendCity, a dual-licensed mortgage broker in Canada and the US, to discuss DSCR loans for Canadians and foreign investors buying US properties. They cover loan terms, refinancing strategies, and key tips for non-US residents.
Key Points
- DSCR Loans Explained: Debt Service Coverage Ratio loans focus on a property’s rental income, not borrower’s income or credit. Ideal for investors from non-sanctioned countries.
- Loan Terms for Foreigners:
- Purchases: 25% down (properties ≥$150,000) or 30% down (lower values).
- Refinancing: 65-70% loan-to-value (LTV).
- Rates: ~7-7.125%, vary by state and prepayment terms.
- Remote online notary (RON) available for higher rates.
- Refinancing Tips: Use fix-and-flip loans (10-30% down, 100% renovation funding) to maximize LTV (up to 75%) on refinance. Seasoning or cost-basis appraisals may apply.
- Entity Formation: Buy in an LLC or LP to limit liability. Canadians may prefer LPs to avoid double taxation. Obtain an EIN early (can take 8 weeks unless expedited).
- Process: Pre-approval in ~1 day, underwriting (title, lease, appraisal) takes 3-4 weeks. Appraisal adjustments can lower purchase prices (e.g., $176,500 to $163,000).
- Misconceptions Busted: Canadian credit scores rarely affect US DSCR loans. Work with specialized brokers to navigate terms and avoid generic advice.
- Pro Tip: Focus on properties with strong DSCR. Use professionals for pre-vetted deals and entity setup to save time and reduce risks.
Guests
- Scott Dillingham, LendCity: https://lendcity.ca
- David, Host: https://cashflowrentals.net/
Resources
- Cashflow Calculator: Sign up for the full video at https://podcast.lendcity.ca to access Scott’s 30-year vs. 40-year amortization tool.
- Investor Support: Contact David’s team for pre-vetted US properties and entity setup.
Published: September 30, 2025
79 episodes
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