Best Rental Loans California
Valor Lending Group
Rental loans help real estate investors buy and hold for rental income or fix and flip for a quick profit.
Rental loan programs are skyrocketing in popularity in todays market. Investors interest is sparking with the competitive financing for residential properties and the Cash-Out refinancing available for investment properties.
Valor Lending Group has multiple funding sources for all types of rental property loan scenarios. By choosing Valor Lending Group you are signing on to receiving professionalism, outstanding communication and a team that will go the extra mile to deliver perfection.
What is Debt Service Coverage Ratio (DSCR)?
The DSCR = Properties Current Rents / New PITI (principal, interest, taxes and insurance) monthly Payment. If your property is collecting rents that covers your current PITI Payment your property debt services aka your properties rents cover your total mortgage payment.
Example of DSCR Calculation: New P&I = $1,851.26 + 758.53 taxes + $147 insurance = $2,756.79 PITI | $3200 Current Rents/$2756.79 = 1.16 DSCR
DSCR (Debt service coverage ratio) is one of many financial ratios that lenders assess when considering a loan application. DSCR is an important ratio that helps indicate to the lender whether or not you will be able to pay back the loan with interest. A ratio over 1 is good, and the higher the better.
The minimum DSCR a lender will demand depends on macroeconomic conditions. If the economy is growing, lenders may be more forgiving of lower qualifying ratios.
Here’s how to interpret your DSCR:
- DSCR < 1: You have negative cash flow. You don’t have enough rental income to service the debt (New PITI payment).
- DSCR = 1: You have exactly enough rental coming in to service the debt (New PITI payment), but you don’t have an additional cash cushion.
- DSCR > 1: You have positive cash flow. The higher your DSCR, the more income you have to service the debt (New PITI payment).
Highlights |Best Rental Loans California:
- No Tax Returns
- Employment not Required
- No Income Required
- No Debt to Income Ratio Calculated
- Cash Flow based on Subject Property rents | if property is vacant upon purchase market rents from the appraisal will be used to calculate DSCR
- SFR, Condo and 1-4 Unit
- Maximum Loan $2.5M | Purchase and R/T Refinance
- Maximum Loan $2M | Cash out Refinance
- Unlimited Financed Properties OK
Don’t let rising rates prevent you from acquiring more investment properties!
Valor Lending Group has solutions to access capital through a refinance with rates that will let your property’s cash flow.
Contact me today for immediate attention to your scenario
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