We understand the unique needs and challenges of property investors. That’s why we offer innovative solutions and common sense underwriting designed to provide more options, great rates and a smooth funding experience.
Debt Service Coverage Ratio loans
DSCR Loans, also known as Investor Cash Flow Loans. If you want to purchase an investment property but don’t want to use your personal income to qualify, you may want to use a DSCR loan. Your debt service coverage ratio will be examined to determine your eligibility. A DSCR loan is a measure of the cash flow a borrower has to pay against a current debt obligation for an investment property. A DSR is a Non-QM loan used by real estate investors to help them qualify for a loan based on their property’s cash flow. To qualify, the property must generate enough rental income to offset the mortgage payment plus other expenses associated with the investment property. The debt service coverage ratio is calculated by dividing the net operating income of the investment property by the debt obligations. A DSCR loan doesn’t require proof of personal income through tax returns or pay stubs. However, a real estate investor must show their ability to repay the loan with a qualifying DSCR.
Highlights:
- Max 80% Purchase
- Max 80% Rate and Term Refinance
- Max 75% cash-out Refinance
- Loan amounts down to $100K and up to $3 million
- Minimum FICO 575
Fix and Flip loans
Fix & Flip loans are for housing market investors profiting from the ability to purchase older derelict properties, fix them up, and either resell or rent out these properties for passive income. Borrowers with any level of investor experience can apply for these loans. They are suitable for non-owner-occupied single-family, multi-family up to four-unit property types. Purchase loans will go up to 85% of the cost of the property, and construction loan amounts will go up to 100% of the cost. In addition, Fix and Flip loans offer a 12-month term with interest-only payments, so the investor will have a low monthly payment as they fix up the property.
Highlights:
- Purchase and Construction
- Refinance and Construction
- Minimum FICO 660
Financing up to 24 Units loans
Financing up to 24 Units loans are designed specifically to purchase small multi-family housing developments. To qualify for a small balance multi-family loan, you need a minimum DSCR of 1.0. The debt service coverage ratio is calculated by dividing the net operating income of the investment property by the debt obligations. This type of financing allows for purchase, rate and term refinance, and cash-out refinance loans. These loans are typically used by more seasoned investors who tend to want to use the property for a passive income stream. Multi-family mortgages work much the same as single-family mortgages, with 30 years being the standard loan term.
Highlights:
- Max 70% LTV on purchase and rate-term refi
- Max 65% LTV on Cash-out refi
- Down to 625 Mid FICO
- Loan amounts down to 250K and up to $3 million
- Interest-only options are available
- Minimum of 6 months P & I in reserve
