DSCR LOAN LENDER
DSCR LOAN LENDER BENEFITS:
PURCHASE – REFINANCE
CASH OUT INVESTMENT LOAN
NO INCOME REQUIRED
BUILD YOUR INVESTMENT PORTFOLIO
Up To 80% LTV
APPLY NOW!
The Nations #1 DSCR Loan Lender
PURCHASE
No Income Investment Loan
Just use rental income to qualify!
No DTI Programs available
Interest Only terms available
30 and 40 year amortization options
CASH OUT REFINANCE
Cash out re-fiinance your investment
property to build you portfolio today!
Low Rates, High Leverage!
Minimal Documentation
Fast Close
REFINANCE {RATE AND TERM)
Refinance & reap the benefits of passive income
from your investment property.
No income or employment required!
Up to 40 year amortization
Interest Only Options!
PURCHASE
No Income Investment Loan
Just use rental income to qualify!
No DTI Programs available
Interest Only terms available
30 and 40 year amortization options
CASH OUT REFINANCE
Cash out re-fiinance your investment
property to build you portfolio today!
Low Rates, High Leverage!
Minimal Documentation
Fast Close
REFINANCE {RATE AND TERM)
Refinance and reap the benefits of passive income
from your investment property.
No income or employment required!
Up to 40 year amortization
Interest Only Options!
The premier rental property investment loan option for long term cash flowing properties, up to 80% LTV
For investors who have an existing short-term loan looking for an opportunity to streamline a 30-year term Debt Service Coverage Ratio (DSCR) loan for non-owner-occupied rental investment properties.
Benefits of DSCR Loans
- No evidence of personal income required
- Maximize cash flow with 30 and 40 year interest only programs
- Cash out to continue buying
- Fast Close!
- No verification of employment
- Nations #1 DSCR Loan Lender
DSCR Loan Lender DSCR Calculation:
Debt Service Coverage Ratio:
The DSCR loan is designed for Real Estate Investors who are looking to qualify for a mortgage loan based on the cash flow generated by an investment property.
A DSCR loan does not require tax returns, proof of income or employment information to qualify
Click Here To Apply!
LOAN PRODUCTS
DSCR LOAN
*Up To 80% LTV
* Cash Out Refinance
* 15-30 Day Close!
* No Income Required
* No Employment Required
FIX TO RENT
*Up to 90% of the Purchase
*100% of the Rehab.
* Closing as fast as 5 days!
* Fix to Flip or Fix to Refi .
* 30 or 40year DSCR loan
CASH OUT REFI
* Cash-out & Refinance
*30 or 40 year loan..
* Closing 30 days!
* Up To 80% LTV
CONSTRUCTION
*Ground Up Construction
Up To 80% Of Land
* 100% of Construction
* Builders and Developers!
DSCR LOAN LENDER – 4 STEPS TO CLOSE!
Step By Step DSCR Loan Application Process
Step 1: Apply
Open a new browser
Go to https://www.CambridgeHomeLoan.com/DSCRLoanApplication
Step 2: Submit Proof of Your Properties Income
As your creditworthiness is verified by the income you will generate from the property you are buying; you need to provide proof that your property can cover the mortgage payments. So, provide the needed documents to showcase your property’s income against the loan amount.
Step 3: DSCR Calculation and 1007 Rent Schedule
Once you submit the loan application, your lender will calculate the DSCR ratio, which must be greater than 1, to have your mortgage approved. Moreover, during the appraisal the lender will require a 1007 Rent Schedule to know the property’s fair market rent and ensure the property can sustain the mortgage with market rents.
Step 4: Closing
DSCR loans do not need information about your financial history; the application and closing procedure is considerably faster than those for other types of mortgage loan programs.
APPLY NOW!
What are the requirement to obtain a Debt Service Coverage Ratio (DSCR) Loan?
The only requirement for a DSCR loan is the assets ability to repay the debt on the loan. Typically a DSCR Loan lender in Georgia will have a required ratio that needs to be met to qualify for the DSCR loan. A 1x means that the cash flow of the property needs to cover 100% of the property expenses including the mortgage. Some lenders require the DSCR to cover 1.2 or 1.25 times. The higher this ratio the better for both the lender and the property owner. If your DSCR ratio is 1.2, than your properties cash flow covers 20% more than the properties expenses. We can lend with DSCR down to .8.
How to calculate your properties DSCR Ratio:
DSCR= NOI (Net operating income) -Expense
___________________________
Mortgage Payment
Income – Expenses = $3,000.00 divided by $2,000 = $1.5% DSCR ratio =1.5%
Anything over 1 means you are profitable. Under 1 means that there is not enough cash to cover your expenses.
Get pre-qualified for Investor Cash Flow Mortgage based on potential rental income
No charge and no obligation to apply.
No income or tax returns required
Step 1: Apply
Click on the link above and fill out the application.
Step 2: Submit Proof of Your Properties Income
As your creditworthiness is verified by the income you will generate from the property you are buying; you need to provide proof that your property can cover the mortgage payments. So, provide the needed documents to showcase your property’s income against the loan amount.
Step 3: DSCR Calculation and 1007 Rent Schedule
Once you submit the loan application, your lender will calculate the DSCR ratio, which must be greater than 1, to have your mortgage approved. Moreover, during the appraisal the lender will require a 1007 Rent Schedule to know the property’s fair market rent and ensure the property can sustain the mortgage with market rents.
Step 4: Closing
DSCR loans do not need information about your financial history; the application and closing procedure is considerably faster than those for other types of mortgage loan programs.
Once you are approved for the loan, you will be provided with the interest rate, monthly payment, and the closing costs. Once agreed, you will go through the underwriting process, sign the final documents and close the loan.
DSCR LOANS (FREQUENTLY ASKED QUESTIONS)
DSCR loans typically require a 20-25% down payment.
Not at all! Approval for DSCR loans is easier because it depends on your property’s income rather than your financial situation.
DSCR loans are simpler to obtain, and the application procedure is more efficient and simplified. The criteria for DSCR loans are generally less stringent.
The DSCR loan allows you to acquire a wide range of properties for various purposes, including short-term and long-term rental. You can buy a single family investment property, 1-4 Family or 5+ Multifamily.
DSCR loans are typically given for terms of anywhere from 5 to 25 years, with the most common being 15 or 20 years. The length of the loan will generally be determined by the lender based on factors such as the type of property being purchased and the projected cash flow of the business.
The easiest way to improve your DSCR is to invest more money, but you can also buy insurance, fight annual property taxes, and charge more rent. Allowing pets or including extra amenities like a washer and dryer are easy ways to increase your rent. Additionally, In order to improve your DSCR, you need to increase your net operating income or reduce your debt service payments.
To be eligible for a DSCR Loan, you must have strong credit and income. Most importantly, you’ll need to demonstrate that you can make your mortgage payments by providing proof of income from your rental property.
A no DSCR loan is a type of commercial loan that does not require the borrower to have a DSCR of 1.0 or higher. This indicates that the borrower does not need to earn enough income to cover their monthly debt payments. No DSCR loans are typically used by businesses that are expanding or taking on new projects, as they may not have the income necessary to meet all their debt obligations.
Pros:
• Easier to qualify than other investment property loans
• No personal income verification is required
• Flexible underwriting guidelines
• It can be used to finance properties with little or no rental history
Cons:
• Higher interest rates and fees than conventional mortgages
• 20-25% down payment required
• Must provide proof of income from rental property to qualify
• Closing costs can be high for DSCR loans.
Overall, DSCR loans can make it easier to purchase investment properties and provide flexible financing options. Be sure to compare lenders and get the best rate available for your situation.
A DSCR of 1.25 means that there is sufficient cash flow to cover the loan payments and other debt obligations. Specifically, a DSCR of 1.25 indicates that for every $1.25 in annual loan payments, there is $1.00 of net income available to pay those debts after accounting for all operating expenses (including taxes and depreciation).
A DSCR of 1.25 is considered a good ratio by lenders, as it shows that the borrower has sufficient income to cover their loan payments. It also indicates that the borrower’s debt obligations are manageable. In general, lenders prefer to see a DSCR of at least 1.15 for conventional loans and 1.25 for investment properties.
Example:
Rental income: $150000, Expenses: $25000, Mortgage Payment: $100000
DSCR= $150K – $25K/ $100K
= $125K/$100K = 1.25
A higher DSCR is even better, as it shows the lender that the borrower has more than enough income to cover their loan payments.
No, you do not need good credit for a DSCR loan. While your credit score is still important, it carries less weight when it comes to qualifying for a DSCR loan. This is because lenders will focus more on the rental income and expenses associated with the property in order to determine if the borrower can make their loan payments.
The debt service coverage ratio (DSCR) for commercial loans is a measure of an entity’s ability to meet its debt obligations. It is calculated by dividing the net operating income (NOI) by the total loan payments per year. The higher the DSCR, the more cash flow there is available to make payments on the loan, and it is thus preferred by lenders.
The maximum debt-to-income (DTI) ratio for a DSCR loan is usually 45%. This means that the borrower must have income that is at least 45% lower than their total monthly debt payments.
In other words, if your total monthly debts are $2,000, then you’ll need to demonstrate at least $1,800 in monthly income to qualify for a DSCR loan.
While this is the general rule of thumb, lenders may have different requirements, so it’s best to check with your lender to see what their specific DTI requirements are. There are also other programs that require no DTI ratio.
Generally, there is no limit on how many DSCR loans you can have. However, lenders will usually impose a maximum loan-to-value (LTV) ratio and/or total debt service coverage ratio (TDSCR) when determining the amount of money they are willing to lend out. It’s important for borrowers to work with lenders to ensure that their rental income and expenses align so that they can meet the loan terms.
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