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6 Steps To Buying A Home

Best Rental Property Loans. No Income Required: Are you a Investor looking to purchase a new investment property or refinance your current investment property into long term financing? You can use the current leased rents or market rents in your area to qualify. NO INCOME OR TAXES REQUIRED.

What is a Best Rental Property Loans or Debt Service Coverage Ratio (DSCR) Loan?

Best Rental Property Loans. No Income Required! The DSCR loan = 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.

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

Debt service coverage ratio (DSCR) is one of many financial ratios that lenders assess when considering a loan application. This ratio is especially important because the result gives some indication to the lender of whether you’ll 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 Property Loans :

  • 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

Valor Lending Group

Our Goals: Excellence. Simplicity. Limitless

We take pride in our lending services. Adam Lawrence is your loan officer for all mortgage and loan needs. Call or email today!

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