DSCR (Rents to Qualify)

Our Investor Cash Flow mortgage program allows your clients to qualify based on rental analysis to determine property cash flow. No personal income required to qualify. This saves you from submitting complicated income statements and tax returns.

Overview

• DSCR as low as 0.85 by exception
• Arms (Interest only available) and Fixed Products Offered
• LTVs up to 75% (80% by exception)
• Loan amounts $200,000 to $2,500,000 (up to $3.5M by exception)
• SFR, Condo, 1-4 units, Cond-tel
• Minimum FICO 680 (660 by exception)
• Vesting in Corporations & LLC’s allowed
• Unlimited financed properties
• Appraisals require forms 216/1007 to be included

How to Calculate Monthly Income

• Debt Service Coverage Ratio (DSCR) is used to qualify
• Qualification based on property cash flow (take 100% of the gross yearly rents divided by the PITIx12 (yearly) of the subject property)
• Rents are derived from the lesser of the rental/lease agreement or the rent survey (Form 1007)
• Use the note rate or fully indexed rate whichever is higher for qualifying
• The PITI calculation for interest only loans is based on a 30 year amortization (40 year loan)
• Do not provide any personal income and no 4506T required
• No DTI calculation is used – Loans under the DSCR Investor Program are classified as business loans. Appendix Q and ATR requirements do not apply

Be sure to choose DSCR under the doc type drop down in quick pricer.