DSCR Investment Property Loans

DSCR means “Debt Service Coverage Ratio” which is the Monthly Gross Rental Income divided by the payment of the property.

Simply put I will qualify you based on the potential rental income of the investment property and NOT your personal income. This is for the purchase or refinance of RENTAL (investment) properties only. No owner occupied on this program.

15% down with 720 score. Houses and townhouses only. 15% down requires that borrower have owned 2 properties within the past 24 months (at least one must have been a rental). No first time investors with 15% down. The rental amount must cover the payment!

20% down payment with a 660 score

25% down payment with a 600 score.

You can use the property for short term (airbnb style) rentals, HOWEVER, Appraisers must use the monthly rental rate, based on comparable units within a few miles. i.e. The monthly rental rate for similar properties is $2000 but with short-term rentals, you think you can make $3000 per month. The Appraisers must use $2000 as the qualifying rental rate. If the rental rate doesen’t cover the payment then more down payment may be required.

6-months of reserves is usually required. Reserves are not always required if down payment is 25% or more.

Interest Only is available with at least 20% down.

Cash out refis are also available, up to 80% of the value.

Gift funds are allowed for funds to close in certain circumstances. Borrower must have much of the down payment.

Full Interior / Exterior appraisal required. Appraisal Transfers from other Lenders is allowed under certain circumstances.

Property Types: SFR / Condos / Townhouse / 2-8 Units / Non-Warrantable Condos / Condotels (25% down on Condotels)

Eligible Borrowers: U.S. citizens • Permanent resident aliens • Non-Permanent Resident Alien • Foreign Nationals

Housing History

• A 12-month good housing history is required for borrower(s)’ primary residence, unless, the primary residence is owned free and clear.
• Mortgage/rental history is required for all properties. If a borrower’s mortgage or rental history is not reported on the credit report, alternative documentation showing the most recent 12 months’ history (cancelled checks, mortgage/rental statements including payment history, verification of mortgage/rental, etc.) must be provided.

Min Loan Size is $100,000 to $150,000 depending on which investor we use.