- LOAN PORTAL
If you’re structuring a deal using the Morby Method or planning to use DSCR financing, the most important first step is pre-screening with your lender.
This isn’t just about loan approval—it’s about ensuring:
Your lender supports creative structures like seller carrybacks
The deal actually makes economic sense
You avoid wasting time and money on a deal that won’t close
At Levine Capital, we help investors structure and fund deals the right way—because skipping this step can cost you the deal.
✅ Confirm Lender Compatibility
Not all lenders are comfortable with creative financing. You need a partner who understands:
DSCR loans
Transactional funding
Second-position seller financing
✅ Get a Term Sheet Before Making Offers
Before negotiating with a seller, know exactly:
What your lender will lend
The expected interest rate
Down payment & reserve requirements
Closing costs and loan structure
This keeps your numbers real—and your offer solid.
✅ Avoid Wasting Time
A lender who can’t fund the structure you present will leave you scrambling. Pre-screening eliminates that risk.
✅ Avoid Bad Deals
Pre-screening protects you from making a bad investment. Lenders can flag:
Overpaying
Weak cash flow
Aggressive seller terms
Deals that don’t work in today’s volatile rate environment
🧠 DSCR rates fluctuate often. Underwrite conservatively. If the deal still works, it’s solid.
Step 1: Understand the Seller’s Motivation
Why do they need a large down payment? (Debt? Taxes?)
Build rapport
Tailor your structure to solve their problem
Step 2: Pre-Screen with Your Lender
Share deal structure and numbers
Confirm approval of second liens or hybrid financing
Get a soft quote or term sheet
💡 Set up all counterparties early—lender, TC, title company, seller’s attorney—to prevent surprises.
Step 3: Analyze the Numbers
Calculate DSCR = Rent ÷ PITIA
Use market rent (1007 or 1025) if vacant
Include taxes, insurance, HOA, reserves, and closing costs
Underwrite conservatively, especially with rate volatility
Step 4: Present the Deal to the Seller
Explain the structure: “We’ll finance part and you’ll carry back the rest.”
Highlight the benefits: cash now + passive income
Be ready to overcome objections
Step 5: Lock in the Purchase Agreement
Include a financing contingency
Set a 30–60 day timeline
Clarify seller’s role (e.g., promissory note)
Step 6: Finalize the Loan
Submit required documents (contract, rent schedule, bank statements)
Coordinate with title and TC
Review the closing statement
Step 7: Close the Deal
Sign all documents
Fund the transaction
Record the seller’s second lien if applicable
Step 8: Manage the Property
Begin your strategy (rental, flip, Airbnb)
Stay in touch with the seller—they may bring more deals
✔️ Eligible with Levine Capital:
❌ Ineligible:
Size Requirements:
Condition:
Occupancy:
Geography:
| Purpose | Max LTV | Min DSCR | Notes |
|---|---|---|---|
| Purchase | 80% | 1.05x | Based on lower of price or appraised value |
| Rate/Term Refi | 80% | 1.05x | No cash back |
| Cash-Out Refi | 75% | 1.05x | Must be for business purpose |
Formula:
DSCR = Gross Monthly Rent ÷ PITIA
Where PITIA = Principal + Interest + Taxes + Insurance + HOA
Use lower of lease rent or 1007/1025 market rent
If vacant: use 100% market rent from appraisal
For 2–9 units: underwrite vacant units to market rent
Minimum DSCR = 1.05x
Entity Required: Must close in LLC or Corporation
Min FICO: 660
Eligible Borrowers: U.S. Citizens, Permanent Residents, Foreign Nationals (w/ U.S. FICO & capped LTV)
Credit & Tradelines:
No more than 1×30 late in past 12 months
No BK/FC in past 3 years
3 tradelines: 2 active, 1 ≥ 24 months
Reserves:
Loans < $1M: 6 months PITIA
Loans ≥ $1M: 9 months PITIA
✅ Acceptable Sources:
Real estate sale (HUD + deposit)
Transfers from borrower’s own accounts (3-month history)
Sale of assets (w/ documentation)
Business distributions
Loan repayments (with trail)
❌ Not Allowed:
Funds from non-guarantor accounts
Gifts, crowdfunding, equity gifts
Unexplained large deposits
Credit card advances
Seasoning:
Funds must be in U.S. account
Held ≥ 60 days to be considered “seasoned”
Foreign Nationals: Funds must be in U.S. before closing
For Purchase:
Purchase contract
3 months bank statements
Lease (if occupied) or 1007/1025 Rent Schedule
Insurance quote, tax cert, HOA docs
Entity formation docs
For Refi:
HUD/Deed
Current lease(s)
Payoff letter
Insurance & taxes
2 months bank statements
Entity docs
Levine Capital makes creative financing simple:
✅ 1–9 unit DSCR loans with competitive rates
✅ Gap & transactional funding to close hybrid deals
✅ Experienced Transaction Coordinators to manage the process
✅ Fast pre-screens, conservative underwriting, and no fluff
✅ Alignment with all counterparties—title, agents, attorneys, and sellers
🚫 Don’t risk your deal on a lender that doesn’t understand creative finance. Work with a team that can handle the entire structure—from A to Close.
We believe in providing real estate investors with the best tools and resources to scale their businesses. That’s why we’ve partnered with industry-leading platforms to help you access funding, find deals, and close transactions more efficiently.
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