DSCR Mortgage Loans forReal Estate Investors |
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Get a mortgage using the rental income of the property you are buying or the property you own. Let us help you with your mortgage journey. No W2? No Tax Returns? We have you covered using only rental income
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The minimum credit score is 620.
DSCR Loans are for Investment properties (Rental Properties).
Down payment requirements for bank statement loans start at 10% down (90 LTV) for a Primary Residence, SFR (Single-Family Residence), and 700+ Fico Score. Non-owner-occupied Investment properties start at 20% down.
DSCR Cash-out refinance – 75 LTV (Adjustments for lower FICO scores and property types have adjustments).
No Ratio Cash-out refinance – 70 LTV. (Adjustments for lower FICO scores and property types have adjustments).
Property Types
- SFR (Single Family properties)
- Multi-Family Properties – 2-9 unit properties
- Condo’s
- Non-Conforming Condo’s
- Condo Hotels
- High Rise Condo’s
Investment property non-QM loans have pre-payment penalties. They range from 1 to 3 years and can go out for 5 years. The longer the period for the pre-payment penalty, the lower the rate. The pre-payment penalty can be bought out, and there is a lower rate by paying points at closing.
To get the best pricing, a 1 or a 2 year pre-payment penalty offers the best terms for DSCR Loans.
Certain states do not have pre-payment penalties based on state laws.
Pricing is based on the following:
1) FICO score
2) Purchase, refinance, or cash-out refinance
3) Primary Residence, 2nd home, or investment property
4) Type of property: SFR, Condo, townhome, multi-family property
5) Location (Zip Code): built-up area or Rural area.
Interest Rates for non-QM loans are higher than conventional loans.
Call to get a custom quote for a Non-QM loan.
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We offer Non-QM Mortgage Loans, including the following types of Non-QM Loans:
If you are a business owner and your CPA writes off too much of your income for your taxes but you make plenty of income through your business, we have loan options that are non-conventional loan products. Income is proved through deposits of your bank statements, whether it is your personal or business bank statements, we can help you with a bank statement loan. |
Lastly, networking with other real estate investors and professionals can provide valuable insights and strategies on successfully utilizing DSCR loans. Joining local investment groups or engaging in online forums can lead to beneficial partnerships and investment opportunities.
In addition to traditional rental properties, DSCR loans can also be utilized for investing in commercial real estate. This diversification can increase your income streams and reduce risk, as you are not solely reliant on the residential rental market.
It’s also essential to consider the varying terms and conditions offered by different lenders for DSCR loans. Conducting thorough research and comparing options can lead to more favorable interest rates and loan structures, ultimately saving you money in the long run.
Another advantageous feature of DSCR loans is their potential for cash-out refinancing. For instance, suppose you want to tap into the equity of your current rental property. By refinancing, you can access funds to invest in additional properties or make improvements to existing ones, thus enhancing their value and rental potential.
Understanding your market is crucial when applying for DSCR loans. Researching rental rates in your area can provide you with insights into potential income, helping you make informed decisions about property purchases.
Moreover, the flexibility of DSCR loans allows you to explore various property types. For example, if you are interested in multifamily properties, you can easily qualify for financing by demonstrating adequate rental income from existing tenants.
Consider a scenario where you own a single-family rental home that generates $2,500 a month in rental income. With DSCR loans, you can use this income to qualify for a new mortgage on another property, thereby increasing your investment holdings without the need for traditional income verification.
As a real estate investor, understanding the nuances of DSCR loans can significantly impact your investment strategy. For instance, if you are looking to acquire multiple rental properties, leveraging DSCR loans allows you to use the income generated from these properties to qualify for additional financing. This method not only enhances your cash flow but also positions you for growth in your real estate portfolio.