DSCR LOANS
New Mexico

THE BENEFITS OF A DSCR LOAN IN NEW MEXICO:

  • Up To 85% of The Purchase
  • 80% For Cash Out Refinance
  • FICO as low as 600
  • Fast Close!
  • No Income Required 
  • No Employment Required

Best Rates and Terms for  DSCR Loan In NM

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CambridgeHomeLoan.com, your trusted partner for unlocking real estate investment opportunities in New Mexico with our specialized DSCR loans New Mexico program. Whether you’re a seasoned investor or just entering the market, our tailored financing solutions empower you to achieve your financial goals.

DSCR Loan New Mexico is one of the most important tools for real estate investors providing some of the highest leverage for rental real estate assets.  For purchases we go up to 85% LTV. For Cash out Refinance Up to 80% LTV.

PURCHASE

No Income Investment Loan
Just use rental income to qualify!
Up To 85% Of The Purchase Price
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, Up To 80% LTV!
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!

The premier rental property investment loan option for long term cash flowing properties, up to 85% LTV
for A DSCR Loan New Mexico.

For investors who have an existing short-term loan looking for an opportunity to streamline a 30-year term Debt Service Coverage Ratio Loan for non-owner-occupied rental investment properties.

Benefits of DSCR Loans in New Mexico:

  • 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
dscr loan program

DSCR LOAN

*Up To 80% LTV
* Cash Out Refinance
* 15-30 Day Close!
* No Income Required
* No Employment Required

fix and flip loan programs

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

rental loan

CASH OUT REFI

* Cash-out & Refinance
*30 or 40 year loan..
* Closing 30 days!
* Up To 80% LTV

construction loan

CONSTRUCTION

*Ground Up Construction
Up To 80% Of Land
* 100% of Construction
* Builders and Developers!

What are the requirement to obtain a Debt Service Coverage Ratio (DSCR) Loan in New Mexico?

The only requirement for a DSCR loan in New Mexico is the assets ability to repay the debt on the loan. Typically a DSCR Loan lender in New Mexico 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 New Mexico 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 in New Mexico:

 

DSCR= NOI (Net operating income) -Expense
 ___________________________
 Mortgage Payment 

Example: Income of $4000.00  Expenses $1,000.00, Mortgage Payment $2,000.00
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.
 Step By Step DSCR Loan Application Process:
Step 1: Apply

Click here 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 LOAN NEW MEXICO (FREQUENTLY ASKED QUESTIONS)

Are DSCR Loans Expensive?

DSCR loans typically require a 20-25% down payment.

 
Is it hard to get a DSCR Loan?

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.

What type of property can I buy with a DSCR Loan?

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.

How long is a DSCR loan?

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.

 
 
How can I improve my DSCR?

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.

 
 
 
How do I know if I’m eligible for a DSCR Loan?

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.

 
What is a no DSCR loan?

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.

 
 
What are the pros and cons of a DSCR loan?

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.

 
 
What does a DSCR ratio of 1.25% mean?

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.

 
Do you need good credit for a DSCR loan?

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.

 
What is a DSCR for commercial loans?

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.

 
 
 
What is the maximum DTI (Debt to income) for a DSCR loan?

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.

 
How many DSCR loans can you have?

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.

 
 

How to Secure Your DSCR Loan:

  1. Submit Your Application Online: Getting started is easy. Simply visit our website and complete our user-friendly DSCR loan application form. DSCR Loan Application
  2. Document Submission: Provide essential documentation, including property lease (if any), rental income history, 2 months bank statements, company formation documents. This information helps us understand your goals and tailor the loan to your specific needs.
  3. Undergo Quick Approval Process: Our streamlined approval process ensures that you receive timely feedback, allowing you to move forward with confidence in your investment endeavors.
  4. Close the Deal: Once approved, we guide you through the final steps of closing the deal. Our team ensures a seamless process, so you can focus on what matters most – your real estate success in New Mexico.

Why CambridgeHomeLoan.com?

  • Expertise in New Mexico Real Estate: With over 25 years of experience in the New Mexico real estate market, we have a deep understanding of local dynamics, helping you make informed investment decisions.
  • Personalized Service: We believe in building lasting relationships with our clients. Our team is dedicated to providing personalized service to guide you through every step of the financing process.
  • Transparent and Competitive Terms: We pride ourselves on transparent communication and competitive loan terms. You can trust us to deliver a financing solution that aligns with your objectives.

Start Your Real Estate Journey Today:

Don’t miss out on the lucrative real estate opportunities New Mexico has to offer. Take the first step towards financial success by applying for a DSCR loan New Mexico with CambridgeHomeLoan.com. Unlock the potential of your real estate investments and build a prosperous future.

Ready to transform your real estate ventures in New Mexico? Apply for your DSCR loan today! 

TOP AREAS TO INVEST IN REAL ESTATE PROJECTING THE HIGHEST RETURNS IN 2024

  1. Albuquerque:

    • The largest city in New Mexico, Albuquerque has a diverse economy, including technology, healthcare, and tourism. The city has seen population growth, making it a potential area for real estate investment.
  2. Santa Fe:

    • Known for its rich history and cultural attractions, Santa Fe attracts both tourists and residents. The real estate market may benefit from its unique charm and popularity.
  3. Las Cruces:

    • Located in southern New Mexico, Las Cruces has seen population growth and offers a lower cost of living compared to some other areas. The city’s proximity to the border and various outdoor amenities can make it an attractive investment location.
  4. Rio Rancho:

    • As a suburb of Albuquerque, Rio Rancho has experienced growth in recent years. It offers a mix of residential and commercial development opportunities.
  5. Taos:

    • Known for its artistic community and natural beauty, Taos is a unique market. It attracts tourists and individuals looking for a more laid-back lifestyle.
  6. Farmington:

    • Located in the northwest part of the state, Farmington’s economy is influenced by the energy and oil industries. Real estate investment opportunities may align with the local economic landscape.
  7. Los Alamos:

    • Home to the Los Alamos National Laboratory, this city has a strong scientific community. The demand for housing from professionals in the science and technology sectors could drive real estate opportunities.
  8. Corrales:

    • A small village near Albuquerque, Corrales is known for its agricultural charm and rural atmosphere. It can be an attractive area for those seeking a more peaceful living environment.

Before making any investment decisions, it’s crucial to consult with local real estate professionals, conduct market research, and consider factors such as property taxes, crime rates, and potential for future development.

EXPERT REAL ESTATE INFORMATION BLOG

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Investment Loans, Investment Rental Loans, DSCR Loan Ohio, DSCR Loans, Debt Service Coverage Loans. Commercial Real Estate Loans, Dscr loans for investment properties