15% Lowest Down Payment Investment Property Loan
Valor Lending Group now has access to 15% down payment DSCR loans. What is a DSCR loan? DSCR loan, is a type of financing to purchase or refinance a investment property. This is common to used to qualify entity’s or persons new rental property real estate transaction. Basically the ability to produce enough rent to completely cover their PITI payments. The higher the ratio gets, the easier it becomes for that entity or person to obtain financing for the investment property. The DSCR loan equation is properties current rents divided by 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.
How is a DSCR Investment Property Loan calculated?
Lowest Down Payment Investment Property Loan Lenders will take the gross monthly rent collected divided by the new PITI (principal, interest, taxes and insurance) monthly Payment. If your property is collecting rents that covers your new PITI Payment your property qualifies for the loan. *Other conditions will apply
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 Top DSCR Investment Property Loan
- 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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