Jonathan Allen, a private-money lender, explains DSCR loans, which focus on a property's cash flow rather than the borrower's income. Rented properties get the best terms. A complete application needs a HUD-1 statement, ID, lease agreements, tax info, and an appraisal, with a term sheet generated in 5 to 10 minutes.
Hi everyone, my name is Brian Ogilvie. I am the Chief Operating Officer here at Global Integrity Finance, and I want to introduce Mr. Jonathan Allen. He's been a huge asset to our team. He's got a huge lending background, and I think you'll love to hear what he has to say. But, you know, I'll let Jonathan kind of take over, introduce himself, what he's all about, maybe a fun fact or two from him. So go right ahead, Jonathan.
Hey, what's going on, everybody? As Brian said, Jonathan Allen. I've been in the mortgage industry for about 3 years now. You know, fun fact about that, it was teaching that drove me over here. I love children, I love teaching, but the environment, it just made me start looking for other avenues. So here I am, private money lender, and I've been doing it and I love what I do.
I don't know if adults are any easier to teach than kids or coaching, because I know you have that coaching background as well. Um, but you know, I obviously like it. You've been in this game for a little bit, so you know, tell us about, um, your experience here at Global Integrity. What kind of products you have? Who, who do you kind of market towards? Who do you want to help every day when you, when you walk in the door?
Well, the good thing about Global is that, uh, this is a company that's in transition. We're always looking at ways to improve our processes, improve our our lending programs as well. And, um, I would say the best of which would happen to be the DSCR loan. I mean, that's— it's the, it's the best of the best, um, especially if you're an investor looking to hold on to your property for the long term. It gives you a lot of flexibility. So, uh, that's my favorite.
Like, what do we need to know, or what can you teach somebody about a DSCR if they called the other companies out there and said, hey, I want to a Fannie Freddie loan. How is this different from that?
Well, I would say first things first, Freddie and Fannie, those are government loans, and this one is non-governmental. It's a non-QM loan. And one of the biggest things of how it's so superior when it comes to investors to those type of loans is that it gives you flexibility, right? Instead of them looking at your income, they're looking at your DTI. Things of that nature. A DSER loan is focused purely on the property itself and the income that it generates on a monthly and annual basis. And as long as that fits a, a certain ratio, the property qualifies.
Okay, now do you, do you have to have it rented to qualify, or do, like, do you have to have a renter in there?
So that's going to change lender for lender, but with us, typically I would say yes. Especially if you want to get the maximum benefit from that program.
Okay. So typically, right. So but if somebody didn't have it, you could still bring them in the door. Maybe they have to change their leverages a little bit or something like that. Or maybe it's not as sweet a deal as what people like to advertise, right? Because people always advertise their best thing. But when it comes down to it, you could still probably help them out.
Oh yeah, we definitely could get something done.
Okay, perfect. But if you want, if you want the best of the best, have it rented, right? Because there's less risk. So, you know, you have it rented. We know there's money coming in and that you can sustain that kind of going forward. So that's, that's good to know. What should a borrower and/or mortgage broker know when they call you and say, hey, I'm looking to qualify this deal or this property? What should they know? What should they have ready for you?
So when it comes to getting a term sheet, we need a full file. So a full application, the borrower's information, complete property information. And we also just need the the loan type that you're pursuing. If we have that, typically it takes 5 to 10 minutes to get you a term sheet, but a full file is what we like to see up front. Make sure you have all of the documents together, but just having that application will get you started down the right road. It'll get you that term sheet that we need. That way we have the right expectation.
Okay, so tell me about the documents. What kind of documents are you looking for? what could you kind of tell them to prep to say, hey, if you're going to call me because you want a DSCR, like what kind of documents should they have ready for you?
So we're going to need the HUD-1. We're also going to need the borrower's information, so name, date, ID. We're going to need to know if the property is rented. If it is rented, we're going to need the leases on the property. We're going to need the tax information on it, and we're also going to need the perceived value of that property. To get things started.
Okay, and so what if they don't own it? What would you— and they're doing a purchase, they can't have a HUD-1 because they don't own it, right? So what would they need instead?
Uh, executed contract, a purchase contract.
Okay, perfect. How can people get a hold of you? What's your phone number? What's your email? How can people get a hold of Jonathan?
Well, my email is jonathan@globalintegrityfinance.com. My phone number is 469-482- 9595. And I'm usually here from sunup to sundown because I love what I do.
And see, that, that I can vouch for. Uh, yeah, that's not a line there. That's something I've seen myself. Uh, so kudos to you, kudos to everything that you've done and kind of the trajectory that you're going. Uh, you know, I, I appreciate everybody listening in. Love to hear from you. Thank you so much and have a great day.
