New DSCR Mortgage Loan | Valor Lending Group
Are you interested in one of our New DSCR Mortgage Loan Programs?
Would you prefer NOT to use DTI criteria?
Valor Lending Group has got you covered!
New DSCR Mortgage Loan Program
If you are a borrower who prefers NOT to use DTI criteria or if you are unable to meet the requirements of an conventional loan this loan program may be the right one for you. This type of new DSCR loan program is based on reserves, payment history and credit depth. Some of the highlights include, loan amounts up to $3.5 Million, option to vest in LLC and 30 day assets seasoning, which is normally 60 days.
What is a DSCR Investment Property Loan?
Sometimes called “Investment property loans” or “rental loans,” DSCR investment property loan does not consider a borrower’s income in the traditional sense.
The “cash flow” is just the monthly rental amount the property brings in. For example, a property renting for $2,000/month would be attributed a qualifying income of $2,000/month. The main requirement for these investment property loans is that the monthly rents cover the monthly expenses. It is that simple.
Not only is a borrower’s income not considered in the loan application process, investment property lenders do not request income amounts, in fact there is no income verification of any kind. No letters from employers, no W2s, and no pay stubs. Again, the income of the investment property is simply the cash flow of the property.
Why Use a DSCR Investment Property Loan?
Traditional mortgage lenders require tax returns, W-2s, and paycheck stubs in order to determine monthly income. Salaried and hourly borrowers would require the lenders to look at gross income for qualifying purposes. But for self employed borrowers, traditional mortgage lenders look at net income, the adjusted gross income showing on tax returns. This puts real estate investors and other self employed borrowers at a disadvantage.
However, rental loans are a great way for real estate investors to qualify for both acquisitions and refinances, without requiring bank statements or tax returns, and without having to qualify using a debt to income ratio. (Bank statement loans are also a great option for self employed borrowers, to learn more about bank statement loans click here.)
Borrowers that fall outside traditional underwriting guidelines but are looking for long term loans with more attractive rates than hard money loans can use the DSCR investment property loan to their advantage. These loans do not require tax returns, income or employment, or debt to income ratio calculations.
DSCR loans provide the flexibility and lessened documentation of hard money loans, but with rates closer to traditional financing.
This is a constantly evolving area of real estate financing that offers a powerful way to grow your real estate portfolio.
Program Highlights:
- Loan Amounts: Up to $3.5M
- LTV: up to 75% (purchase) and 65% for cash-out
- Maximum financed properties: 20
- 30 days assets seasoning
- DSCR >= 100% or DSCR <100% down to a floor of 50%
- All files require 1007, 216, or 1025 (for 2-4 units) to determine current market rents
- Interest-only financing available (not available in Texas)
- Option to vest in LLC
- Foreclosure/short sale/deed-in-lieu seasoning: 36 months
- Bankruptcy seasoning: 24 months
- Non-warrantable condos permitted
- Short-term rentals are permitted
Valor Lending Group is here to help you with all our your mortgage loan needs!
We offer EVERY mortgage loan in the book!
We are standing by for your call TODAY!
Recap of our Loan Products:
- Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
- Stated Income Loans (Great for business owners and self employed ) No tax returns!
- 100% financing is available (we can cross collateralize other properties if there is enough equity)
- Valor VA Home Loan 100% financing up to $1.5MM
- Rental Property Loan – No tax returns or DTI calculation! Based on subject property cash flow – No DSCR Coverage needed!
- Flipper & Rehab Loans (Flip a property with one of our many options)
- 2nd Position Loans up to $5mm
- Raw Land & Lot Loans
- Ground up Construction for spec homes, custom homes and commercial ground up.
- Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
- Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
- Acreage Properties
- Commercial Loans up to $500mm
- 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
- Foreign Nationals Loans (no social security or residency required)
We also offer:
- Conventional Conforming Loans
- High Balance Conforming
- 10% down Jumbo to $1.5mm
- FHA, USDA
- Reverse mortgages up to $1 Million Value
- Cash Out Refinancing
CONTACT ME TODAY for immediate attention to your scenario!
**Rates and terms subject to change without notice**
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