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Investment Property Loans

Qualify for a mortgage loan solely based on your rental property's cash flow

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Am I Eligible?

Qualification based on property cash flow
Programs are looking for a Debt Service Coverage Ratio of 1%
Loan Amounts up to $3.5 million
Unlimited cash-out on a loan amount up to $3.5m
Minimum Credit Score of 620
Up to 80% LTV available on a loan amount of $2 million
Interest-only loan option available
Non-warrantable condo allowed
Property can be in LLC’s name
Gift Funds are allowed with a minimum borrower contribution of 5%
Minimum Payment Reserves up to a loan amount of $1m is 6 months (cash out can be used to meet reserve requirements on a refinance)
Option of a 0–5-year pre-payment penalty, the longer the pre-payment penalty the lower the interest rate

The Investor Cash Flow mortgage program, also referred to as Debt Service Coverage Ratio (DSCR), allows investors to qualify for a loan based on a rental assessment to determine property cash flow. Suited for new and seasoned real estate investors, this program is key when building a real estate portfolio.

There are over 50 separate investors that offer a version of this program, each with a different set of guideline requirements and thresholds for the program. In many situations, the guideline variance from investor to investor can make a difference in qualifying for the lowest interest rate, which will directly impact cash flow on the property or the difference of not qualifying for the property.

No Ratio Loans
This program is exactly what it sounds like—no rental income is required to qualify. It has been identified as extremely useful for properties where the market rents are not supporting the debt of higher acquisition prices. Very few investors are offering a true no ratio program, and we are one of them.

FAQ

What is a Debt Service Coverage loan?

A type of non-QM loan for real estate investors. DSCR is a measurement of a firm’s available cash flow to pay current debt obligations. Lenders use this program to help qualify real estate investors for a loan because it can easily determine the borrower’s ability to repay without verifying income.

What are the program benefits?

There are two that stand out:

Obtain cash-out within your existing real estate portfolio to fund the down-payment of additional rental properties and then subsequent purchase
Any payment made more than the interest-only payment is applied to the principal balance and the minimum payment will fall the next month. The interest-only feature of these loans will increase your cash flow while providing you with a stable loan program

How much do I need to save for a down payment?

This program requires 20% down.

Is personal income required to qualify for a DSCR loan?

No, personal income isn’t required to qualify. This means there is no need to submit income statements or tax returns.

How is Debt Service Coverage Ratio calculated?

A lender will divide your gross rental income by your annual debt to calculate your DSCR; which determines how much income the property generates. Typically, these programs are looking for DSCR of 1%.

Are short-term rentals accepted?

Short term rentals (like AirBnB and VRBO) are accepted and rents will be averages over the most recent 12-month period.

Resources

Closing a Home Loan in the Name of an LLC

Getting a Gift for Down Payment to Buy a House

Get a Home Equity Loan Fast – 5 Minute Approval!

FHA Condo Not Approved? Apply for Single Unit Approval in as Little as 48 Hours!

Use Temporary Disability and Temporary Leave Income to Qualify for a Home Loan

First Time Homebuyers: Buy a Home with No Down Payment and No Mortgage Insurance!

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Chad Baker
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NMLS #329451
858-353-8331

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