A DSCR Cash Flow Loan (No Income Required) is a financing tool designed for purchasing or refinancing investment properties without requiring income verification. Instead of traditional income qualifications, lenders assess the property’s cash flow—specifically, whether the rental income is sufficient to cover the PITI (Principal, Interest, Taxes, and Insurance) payments.
The higher the DSCR (Debt Service Coverage Ratio), the easier it becomes to secure financing for your investment.
How is DSCR Cash Flow Loan (No Income Required) Calculated?
Example Calculation:
- New P&I Payment: $1,851.26
- Taxes: $758.53
- Insurance: $147.00
- Total PITI: $2,756.79
- Current Rents: $3,200
- DSCR Calculation: $3,200 ÷ $2,756.79 = 1.16 DSCR
Lenders typically require a DSCR of at least 1.0 to qualify. The higher your ratio, the better your loan terms, including lower interest rates.
How to Interpret Your DSCR Ratio
- DSCR < 1.0: Negative cash flow—Rental income isn’t enough to cover PITI.
- DSCR = 1.0: Break-even—Just enough rental income to cover PITI, but no cushion.
- DSCR > 1.0: Positive cash flow—Excess rental income beyond PITI.
Key Benefits of a DSCR Cash Flow Loan (No Income Required)
- No Tax Returns Required
- No Employment Verification
- No Income Required
- No Debt-to-Income Ratio Calculated
- Eligible for SFRs, Condos, and 1-4 Unit Properties
- High Loan Limits:Up to $2.5M for purchases & rate/term refinances
- Up to $2M for cash-out refinances
- Unlimited Financed Properties Allowed
- Max LTV Purchases – 80% for Purchase 1-4 units and debt service 1.0% to 1.24%(85% for purchases with long-term leases SFR only and debt service over 1.25% of higher)
- Max LTV Refinances – 75% cash out(80% for cash-out refinances with credit score over 700)
Your Lending Partner – Valor Lending Group
At Valor Lending Group, we prioritize Excellence. Simplicity. Limitless Opportunities.
For expert guidance on your next mortgage or investment loan, contact Adam Lawrence today!
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858-344-0323/alawrence@valorlending.com
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