A DSCR Investment Property Loans loan allows individuals to qualify based on strictly your credit score and debt service cover ratio. No Debt To Income Ratio, No Verification of Employment, or No Tax Returns!
DSCR loans are ideal for investors, business owners, or commission based who are not able to disclose certain income to qualify their debt-to-income ratio. Also great for individuals that have not been in their current industry more than 2 years.
“Action is the Fundamental key to all Success”
-Pablo Picasso
Call or Email me today to go over your DSCR Loan scenario.
Learn What a DSCR Investment Property Loan Is
DSCR Investment Property Loans is a type of financing to purchase or refinance an investment property that currently or potentially cash flows that produces enough rent to completely cover their principle, interest, taxes, and insurance payment. The DSCR calculation is the property’s current or future rents divided by new PITI monthly payment. If your property produces cash flow of over a .75 percent then the loan is conditionally approved.
Another Key Point, the Approval process is subject to other qualifying conditions*
As an 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
A ratio of over .75% will be needed to qualify for the loan. Higher the ratio, lower your rate will be. the rate will be.
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 of a DSCR Investor Cash Flow Loans
- No Tax Returns Required
- Employment not Required
- No Income Required
- No Disclosures required or Required Wait Periods
- Loan Amounts Up to 2.5 million
- First Time Investor OK
- No Income / No Employment / No DTI Required
- Gifts & Business Funds Allowed
- Minimum FICO 620
- 40 Year Interest – Only Option
- Cash Out Up to 750k
- Up to 85 percent LTV – No Mortgage Insurance Required
- LLC & Corporations Allowed
- No Ratio Option Available (No Rental Agreement)
Valor Lending Group
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