Dominion Financial ServicesThe Baltimore-based private lender, which offers products tailored to real estate investors, has launched a third-party origination program for mortgage brokers, according to an announcement Thursday.
“This marks an important milestone in the company’s commitment to expanding its reach and cultivating partnerships within the real estate investment industry,” the company said in the announcement. “Dominion Financial Services has historically been known for its direct-to-client approach. , now opening its doors to brokerage partners to obtain advantageously priced long-term DSCR lease loans.”
Debt Service Coverage Ratio (DSCR) loans are nonconforming mortgages that allow borrowers to qualify based on the property’s cash flow rather than personal income. Dominion said it offers investors a variety of DSCR options, as well as short-term fix-and-flip financing, ground-up construction financing and multifamily bridge loans.
Demand for investment properties remains strong, although market conditions such as rising mortgage rates and declining inventory levels are hampering transactions in similar ways to consumer homebuyers.
March, to us Yields on single-family rental properties will rise in 2024, the report said. growth in house prices.
The report noted that over the past year, median rents for three-bedroom homes had risen faster than prices for similar owner-occupied homes in 63 per cent of the markets it analyzed.
Wade Susini, chief lending officer at Dominion Financial Services house line In an emailed response, investors are “looking for creative ways” to acquire and redevelop real estate, although inventory levels remain low across the United States.
“Given current rate and inventory challenges, it may be more difficult and costly to obtain deals, leading to the exit of inefficient operators,” Susini said. “Despite this, savvy investors with efficient operations continue to invest. . Dominion Financial is still closing more than $50 million in investor loans each month.
Because speed is a key differentiator when investors choose a lender, Dominion typically closes its DSCR loans within 30 days, Susini said.
“For our core bridge loan product, we are a balance sheet lender that does not require appraisals,” he added. “For approved borrowers, we can provide loan funding as soon as they complete title work, making our process as fast as cash.”
Dominion is a national lender founded in 2002 and has reportedly originated more than $3 billion in loans on more than 11,000 transactions. The stated purpose behind the new program is to provide greater value to business partners by offering wholesale pricing and competitive interest rates to third-party originators.
