Qualifying for a mortgage on an investment property can be tricky, particularly if you own multiple properties. The DSCR (Debt Service Coverage Ratio) option makes qualifying simple: The only income considered to determine qualification is the rental income from the subject property vs. the PITIA payment. No DTI is developed.
The DSCR option makes qualifying for a Cash Out refinance simple: The only income considered to determine qualification is the rental income from the subject property.
DSCR is calculated by taking the lower of the subject property’s market rent disclosed on the appraisal or the lease agreement divided by the monthly PITI(A) payment (ARM P&I based on Start Rate)
Interest Only loans are qualified on the ITIA payment. Key Features include:
No Debt-to-Income Ratio
Maximum Loan to Value up to 80%
Credit score as low as 600
Maximum loan amount $5,000,000
Reserves not required
Income From Market Rent or Lease Agreements on Investment Properties
First-Time Investors Allowed
30-Year or 40-Year Interest-Only Products
Unlimited Cash Out amount options
Gift Funds Allowed With 10% Min Contribution From Borrower’s Own Funds (Cannot Be Used to Meet Reserves)
Eligible Property Types include: Single-Family Dwelling, 2-4 Units, Condos (Warrantable and Non-Warrantable), Condotels
Short-Term Rental Properties OK