Top Rental Loans SD
Valor Lending Group
Rental loans help real estate investors buy and hold for rental income or fix and flip for a quick profit.
Today rental loans have competitive financing for residential properties and they have Cash-Out refinancing available for investment properties that are currently owned.
The National Association of Home Builders (NAHB) conducted a recent examination on rental housing using U.S. Census data.
They found that 86% of rental properties in the U.S. are single family residences; two-to four-unit residences being the next most common type of rental property.
Valor Lending Group has multiple funding sources for these types of rental property loans.
We also have the very best communication, rates, and turn times.
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
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 | Top Rental Loans SD:
- 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 rate prevent you from acquiring more investment properties!
We also have solutions to access capital through a refinance with rate that will let your properties cash flow.
Contact me today for immediate attention to your scenario
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