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DSCR LOAN NEW JERSEY
DSCR Loan New Jersey Benefits:
* Up To 80% Cash Out Refinance
* Purchase, Refinance and Cash Out ok
* No Income or Employment Required
* Minimal Documentation
* Fast Close!
BUILD YOUR INVESTMENT PORTFOLIO
WITH A DSCR MORTGAGE IN NEW JERSEY.
New Jersey DSCR Loan
For investors looking to invest in real estate projects, the State of New Jersey is a greatl option. With its proximity to both New York City and Philadelphia, New Jersey offers DSCR investors a wide range of potential tenants to choose from. The state has a strong economy, with a diverse mix of industries that will provide a good tenancy even during economic downturns.
And for those who are looking for a little more excitement, New Jersey also boasts some of the best beaches on the East Coast. So whether you’re looking for solid returns or a place to relax on the weekends, investing in New Jersey is a smart choice.
With knowing all advantages of investing in New Jersey real estate, you may be wondering what kind of home loan would be the best for it. At LBC Mortgage, we specialize in helping real estate investors secure financing, and we’re familiar with all the different types of loans available.
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 is the best option.
Benefits of New Jersey DSCR Loan Program:
- 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
What is Debt Service Coverage Ratio (DSCR)?
The Debt Service Coverage Ratio (DSCR) is the borrower’s capacity to service or repay the annual debt payment about the amount of Net Operating Income (NOI) generated by the asset. The higher the DSCR ratio, the more net operating income is available to repay the debt.
DSCR Loans in New Jersey:
Debt Service Coverage Ratio:
The DSCR loan in New Jersey 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 in NJ.
A DSCR loan does not require tax returns, proof of income or employment information to qualify
What is meant by Debt Service Coverage Ratio (DSCR)?
To properly analyze an investment property in New Jersey, the investor will want to look at their cash flow. In order to determine a properties cash flow you will need to add up all of your debt obligations to come up with your debt service coverage ratio or DSCR. This will help you determine if you are making money and if your current cash flow can cover your new loan or services your current debt.
In short, the Debt Service Coverage Ratio (DSCR) is the borrower’s ability to repay or service the debt payment or amount due monthly from the bank. The higher the Debt Service Coverage Ratio or DSCR, the more net operating income (aka NOI)is available to repay the debt and for profit..
DSCR lets you know if a real estate property is making enough money to cover the mortgage or not. When a real estate investor applies for a new loan or refinances an existing mortgage, lenders evaluate the debt service coverage ratio as one indicator to calculate the maximum loan amount.
OTHER LOAN PRODUCTS FOR NEW JERSEY INVESTORS
Taking the first step on the real estate road to passive income and wealth? A rental property loan at a great rate can give you the momentum you need to grow your real estate (Buy, Repair, Rent, Refinance, Repeat (BRRRR) business.
FIX TO RENT
Looking for a fix to flip or fix to rent bridge loan. Up to 90% of the purchase and 100% of the rehab. Closing 5-7 days!
Fix to Flip or Fix to Refi into a 30 or 40year DSCR loan and build your passive income.
CASH OUT REFI
Looking to scale your real estate investment portfolio. Cash out and refinance into a 30 or 40 year loan.. Closing fast as 30 days!
Use your cash out to help fund for your next rehab project.
Looking for a ground up construction loan? Are you a builder or investor building a spec house or a P.U.D.. Discuss your ground up scenario with us today and take advantage of the housing shortage.
Top Benefits of DSCR Mortgage In New Jersey
DSCR loans are extremely popular in New Jersey due to benefits that other types of loans simply can’t match. They include the following:
- No income or job history is required.
- No personal income is used to qualify.
- Loan amounts up to $25 mil.
- Unlimited cash out.
- An unlimited number of properties can be owned or financed.
- Low debt service coverage ratios are allowed .85 (qualifies you even with negative cash flow).
- Loans can close in U.S.-based corporation, LLC, and/or partnership.
- Down to a 620 credit score.
- First-time real estate investors are allowed.
- Airbnb short-term rental income is allowed.
- As little as 20% down payment.
- Non-warrantable condo investments are allowed.
- Delayed financing options.
- Interest-only loan payment is available.
- No reserves are required.
What are the requirement to obtain a Debt Service Coverage Ratio (DSCR) Loan in New Jersey?
The only requirement for a DSCR loan in New Jersey is the assets ability to repay the debt on the loan. Typically a DSCR Loan lender 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.
How to calculate your properties DSCR:
DSCR= NOI (Net operating income) -Expense
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.
What is a DSCR loan program in New Jersey? And How Do DSCR Investor Loans Work?
The DSCR loan program in is designed for Real Estate Investors and mortgage brokers who look to qualify for a mortgage loan based on just the cash flow generated by their investment property and without providing proof of income, employment income or tax returns.
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
HOW TO APPLY FOR A DSCR LOAN IN NEW JERSEY
Click on the link below 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 .85, 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.
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