Can you do a dscr loan on a 4 unit property that has an ADU

Can you do a dscr loan on a 4 unit property that has an ADU

Summary of DSCR Loan Eligibility for a 4-Unit Property with an ADU

A DSCR loan on a 4-unit property with an ADU is generally not eligible under most lenders' programs. However, some lenders may allow it depending on specific program guidelines and how the ADU is classified.

Here’s a breakdown of the responses from each lender:

LenderEligibilityNotes
Arc HomeYes, but clarification neededAllows 1-4 unit properties under DSCR programs, but ADUs are not explicitly addressed. Confirm eligibility with the lender.
A&D MortgageNoDSCR program allows 2-4 units but does not mention ADUs as eligible.
AmWestYes, but clarification neededDSCR programs allow 2-4 units, but ADUs are not explicitly addressed. Confirm eligibility with the lender.
Champions FundingNoDSCR program allows 2-4 units, but ADUs are not eligible.
Change WholesaleNoDSCR program allows 2-4 units but does not permit properties with ADUs.
DeephavenNoDSCR program allows 2-4 units but does not explicitly allow ADUs.
Newfi LendingNoDSCR program explicitly excludes properties with ADUs.
FundLoansNoDSCR programs allow 1-4 units but do not explicitly allow ADUs.
Angel OakYes, but clarification neededDSCR program allows 1-4 units but does not explicitly address ADUs. Confirm eligibility with the lender.
UWMNoDSCR programs allow 1-4 units but explicitly exclude mixed-use properties, which may include ADUs.

Key Takeaways:

  • Arc Home, AmWest, and Angel Oak may allow DSCR loans on 4-unit properties with ADUs, but further clarification is needed to confirm eligibility.
  • Most other lenders explicitly exclude properties with ADUs or do not address them in their guidelines, making them ineligible.

Would you like me to dive deeper into any specific lender's guidelines or assist with alternative options?

Revaluate my loan scenario with the updated available lenders

Updated Evaluation for DSCR Loan on a 4-Unit Property with an ADU

A DSCR loan on a 4-unit property with an ADU is generally not eligible under most lenders' programs. However, NQM Funding and LoanStream may allow it depending on specific program guidelines and how the ADU is classified.

Here’s a detailed breakdown of the responses from each lender:

LenderEligibilityNotes
NQM FundingYes, but clarification neededPrograms like Investor Mixed Use 2-8 Units and Residential 5-10 Units and Investor DSCR Program allow 2-4 unit properties. ADUs are not explicitly addressed but may be eligible if the ADU does not change the zoning or classification.
LoanStreamYes, but clarification neededDSCR programs allow 2-4 unit properties. ADU eligibility depends on whether it is considered part of the 4-unit classification or changes the property's zoning or use. Further clarification is recommended.
Logan FinanceNoDSCR programs allow 1-4 units but do not explicitly allow ADUs, making them likely ineligible.
Homebridge WholesaleNoDSCR programs allow 2-4 units but explicitly exclude mixed-use properties, which may include ADUs.
LendSure MortgageNoADUs are considered mixed-use and are not eligible under any DSCR programs.
Oaktree FundingNoDSCR programs allow 2-4 units but do not explicitly allow ADUs, making them ineligible.
The Loan StoreNoMixed-use properties, including those with ADUs, are explicitly ineligible under the Flex NQM DSCR program.
REMN WholesaleNoMixed-use properties, including those with ADUs, are not eligible under the Access Non-QM Program.
Axos BankNoADUs are explicitly excluded from DSCR-based programs like DSCR EXPRESS and Expanded DSCR.

Key Takeaways:

  • NQM Funding and LoanStream may allow DSCR loans on 4-unit properties with ADUs, but further clarification is needed to confirm eligibility.
  • Most other lenders explicitly exclude properties with ADUs or do not address them in their guidelines, making them ineligible.

Would you like me to assist in confirming eligibility with NQM Funding or LoanStream, or explore alternative options?