Miami Mortgage Broker

DSCR – INVESTOR
CASH FLOW LOAN

The DSCR or debt service coverage ratio loan measures the property expected cash flow to determine the ability to repay the loan. This allows borrowers to qualify proposed rental income to determine properly cash flow. NO Personal income or tax returns required so you can be sure a smooth underwriting and quick turnaround to close your investment purchase.

DSCR or Debt Service Coverage Ratio Loan

With rent amounts reaching all-time highs, many people holding liquid assets are looking for opportunities to earn additional income by purchasing investment properties. In some cases, a borrower will find a property with potential to earn significant revenue, but they will have a hard time showing their income on paper or simply do not have enough income to qualify. With traditional lending these borrowers would be left in the cold and their dreams of having an additional passive income source are shattered. Fortunately, borrowers in this situation now have an outlet to purchase an investment property without having to document income.

Investment Property
Purchases with No
Income Verification:

With rent amounts reaching all-time highs, many people holding liquid assets are looking for opportunities to earn additional income by purchasing investment properties. In some cases, a borrower will find a property with potential to earn significant revenue, but they will have a hard time showing their income on paper or simply do not have enough income to qualify. With traditional lending these borrowers would be left in the cold and their dreams of having an additional passive income source are shattered. Fortunately, borrowers in this situation now have an outlet to purchase an investment property without having to document income.
For borrowers facing this challenge we can offer a Debt Service Coverage Ratio loan, or DSCR. A DSCR loan works by taking the potential rental income from the investment property being purchased and using just that income to qualify. The rental income is determined by either an existing lease on the property or the fair market rent amount determined by the appraiser on an appraisal rent schedule. Provided that the potential rent income for the subject property is sufficient to cover the total monthly housing paying (principal and interest, taxes, insurance, HOA), the borrower would meet the debt-to-income requirements per lending guidelines. Most DSCR programs required a one-to-one ratio for payment to income, however there are some programs available that allow this ratio to go down to .75. These mortgage programs are becoming more competitive thus allowing investors a bigger opportunity to diversify their portfolio. While the program will still require the borrower to document sufficient assets and the file will be underwritten very much like a traditional mortgage, but there will not be a need to document income or verify employment. Borrowers using this program will be required to at least own a primary home and, if the property has a mortgage, show a 12-month history with no late payments.
We always advise our clients to look at a variety of mortgage loan products before making an informed decision. Please reach out to your local mortgage broker to discuss the DSCR loan in more detail.

Up to 80% LTV, Loan to Value | Credit Scores Starting at
600 | *Offered in 30 states please see Map

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