DSCR Loans Are a Sensible Option for Savvy Investors
Whatever happened to nine-to-five, 40-hour-per-week jobs that pay a decent salary? They still exist, but the landscape has changed. Work/life balance is the word, and this means that people are thinking outside the box to earn a living.
What does this mean at the mortgage desk? We can’t speak for all mortgage brokers, but at MortgageDepot, it means that we are offering more real estate financing options than ever before. Our clients need flexibility, and that’s why we have a Non-QM Debt-Service Coverage Ratio loan for borrowers who rely on investments as a part of their income.
DSCR Loans Defined
A Debt-Service Coverage Ratio (DSCR) loan is a top option for borrowers who want to use investment earnings, rather than their personal income, to qualify for a mortgage. This type of loan falls under the Non-QM umbrella, meaning that it doesn’t require borrowers to meet the strict federal guidelines mandated by traditional mortgages. It uses alternate criteria to confirm eligibility.
DSCR Loan Program Highlights
If property investment cash flow makes up a significant portion of your income, our DSCR mortgage might help you get closer to your real estate goals. Here are a few of the highlights of the program:
- No income or employment verification is required.
- We offer loan amounts of up to $3 million.
- We offer 30- and 40-year fixed-rate mortgages, as well as 5/6 and 7/6 adjustable-rate mortgages (ARMs).
- Borrowers need a minimum credit score of 599 to qualify.
- We allow a combined loan-to-value ratio (CLTV) of up to 85%.
- DSCR calculations as low as zero are eligible for the program.
- Borrowers must have owned any property type in the past 24 months to qualify.
- Non-permanent residents and foreign nationals are eligible, and this loan is available under the Foreign National Program.
- Condotel purchases are eligible.
- Borrowers may use cash-out funds for reserves.
- We accept cryptocurrency for reserves, down payments and closing costs. Contact our office for more information.
Contact MortgageDepot Today!
We treat our clients as individuals. We believe that borrowers with nontraditional income sources shouldn’t have to jump through multiple hoops to achieve their real estate goals. If you are a property investor who wants to add to your portfolio, contact us today to learn more about our DSCR Mortgage!
Connect with one of our loan consultants for more information.