DSCR Rental Loans

 Rental Loan Program – Single Loan – One to Four Unit Properties

Here are the general guidelines for the rental loan program for a single loan of a one to four unit residential non owner-occupied investment property owned by a business and financed in the name of the business. The rental loan is also known as a DSCR loan. DSCR is the Debt Service Coverage Ratio loan. When a Rental Loan is termed a DSCR loan that means the income that the property produces is the only income used to qualify for the mortgage. These guidelines are for business purpose non owner-occupied properties. These are not conventional loans and the rates and guidelines do not compare to conventional loans.

• Loan Size: $100,000 up to $3,000,000
• Loan to Value: Purchase up to 80%
• Loan to Value: Cash Out Refinance up to 75%
• Loan to Value: no seasoning 80% for BRRRR return of investment option
• Minimum Credit Score: 660
• Minimum Credit Score: 700 for 80%
• Cash Reserves: 3 to 6 months of PITI
• No Ownership Seasoning Options – Great for BRRRR Investment Strategy
• Vacant Property Options
• Airbnb / Vacation Rental / Short Term Rental Options up to 75% LTV
• No Debt ratio options
• And More

Many investors have scenarios that are square pegs and don’t fit into round holes, we have many options to help a lot of them out. The things we cannot overcome are low credit scores and low property values. But recent updates have allowed us to offer the Long Term Rental Program with credit scores down to 640. This is very good considering we are not verifying personal income and funding these loans based off of the cash flow of the property even though the rents are paid to the owner.

Blanket Loan Program

The blanket loan is a loan on a few properties. I also refer to them as small portfolio loans. Blanket loans are often used to cross collateralize the purchase of another property. That is why they are called blanket loans, one loan blankets two or more properties. Here are general guidelines for blanket loan program.

• Loan Size: Minimum $200,000
• Minimum # of Properties: 2
• Minimum # of Units: 2
• Minimum Property Value: $75,000
• Loan to Value: up to 80% Purchase and Rate & Term, 75% Cash Out
• Minimum Credit Score: 680
• Cash Reserves: 3 to 6 months of PITI
• Cash Flow Requirement: Minimum 1.25 Debt Coverage Ratio

Portfolio Loan Program

A portfolio loan is a large blanket loan. Where our blanket loan starts at 2 properties and $250,000 minimum loan amount, our portfolio program is for larger groups of properties (portfolio’s) and larger loan amounts. Here are the general portfolio guidelines. Our portfolio programs also allow multifamily properties.

• Loan Size: Minimum Loan is $500,000 Maximum Loan is $100,000,000. Better terms for loan amounts over $2,000,000
• Minimum Number of Properties: 5
• Minimum Number of Units: 5
• Loan to Value:  Up to 75%
• Minimum Credit Score: 660 (exceptions for lower LTV and stronger cash flow)
• Cash Flow Requirement: Debt Coverage Ratio as low as 1.15% or better
• Cash Reserves: 6 months on loans less than $2,000,000 12 months on loans over $2,000,000
• Recourse: Full Recourse on some loans under $2,000,000
• Non Recourse: Option available for loans $500,000 to $2,000,000 and on always for loans over $2,000,000
• Interest Only Option Available
• Property Types: Residential 1 – 4 units, 5 plus units, and mixed-use properties that are primarily residential

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