In this conversational segment, the speakers introduce a newly launched, closed‑end second cash‑out loan product that uses a Debt Service Coverage Ratio (DSCR) qualifier. The loan enables residential real‑estate investors to tap the equity they have built in properties—often 10‑50%—without disturbing their original low‑rate financing or incurring prepayment penalties. Qualification can be as low as a 1.0 DSCR, allowing borrowers to pull cash for further acquisitions, property upgrades, or adding accessory dwelling units (ADUs). The discussion highlights the product’s appeal to investors who have recent loans with favorable rates and pre‑payment periods, emphasizing its flexibility, low‑cost qualification, and the growing traction it has received over the past 90 days.
Chapters
Now, one other thing we actually rolled out in the last 90 days, which is getting a ton of traction, is we now have a closed-end second cash-out loan using a DSCR qualifier. So think about the production you've done over the last 5 years. Okay. If you were working with investors in '21 and '22, right? And they were 20 in '21 and they got into a DSCR at a phenomenal price.
4.5%, 5%.
We don't want to give up that loan. No. But they built up equity anywhere from 10 to 50%, depending on where that property is.
Easily.
We can now allow them to take cash out of that property qualifying with DSCR calculation.
Right. So say we're in the 1.25%.
Actually, we'll go down to 1%.
1%. So, so 1, so 1 for 1.
Correct.
And they can take cash out and they don't have to disrupt their original financing.
Or if you did a loan for an investor in '23, '24 that's sitting on a 3 to 5 year prepay because it got them the best rate of the day.
Right.
They can now take cash out of that residence using a DSCR qualification on that property versus paying the prepay to get all right. Right. So they can continue to buy properties and invest or even improve that property. Right. We've got some clients out there that are looking for— they've already got a, a 2 or 3 unit and they want to figure out how to put an ADU or a fourth unit on the property. Yep. They can get cash out of that property through that DSCR closed-end second. To then move forward and continue their, their, their growth.
Yeah, that's amazing.
Yeah, it is. It's been a great year. We're doing a lot of great things to really support residential real estate investors.
That's amazing. Holy cow. I'm sitting there running through my mind all the deals I could send you right now.
