The Lowdown on DSCR Loans...
Business Purpose loans DSCR & PROGRAMS
DSCR are qualified on rental income (cash flow) from the property by considering the debt service coverage ratio (DSCR), also known as debt coverage ratio (DCR). Typically, the mortgage payment on the property will be covered by the rent received, which should produce a DSCR score of 1.00 or greater.
A typical Non-QM Debt Service Coverage Ratio (DSCR) loan allows a borrower to qualify for a mortgage based on cash flow generated from an investment property – through a rental, for example – as opposed to their personal income. A calculation generates a debt-to-income ratio and the higher the ratio, the better.
Program highlights:
- FICO 620
- Up to 75% CLTV
- Loan amounts up to $2.5 million
- 40- & 30-year fixed, 5/6 & 7/6 ARM terms
- 30 & 40 Year Fixed, 5/6 & 7/6 ARM
- 3 months reserves
- 12 months from bankruptcy or foreclosure
- Condos up to 80% CLTV
- Combination of business and personal bank statements allowed
- Condo and condotels allowed
Why an FHA Loan?
Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. An FHA down payment of 3.5%is required. Borrowers who cannot afford a traditional down payment of 20% or can’t get approved for private mortgage insurance should look into FHA loans.
- Fixed Rates
- Adjustable Rate Mortgage (ARM)
- 3.5% Down Payments
- Jumbo & Super Jumbo Loans
- Terms from 5 to 30 Years
