Unconventional Mortgages (800) 718-8906

Unconventional Mortgages and Loans

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Unconventional Mortgages - A Wealth of Information Resource & Service: (800) 718-8906

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A Variety of Unique Jumbo Construction Loans

Jumbo Construction Loans – Guidelines and Highlights. Below is a list of some of our “Jumbo” Construction loan programs. Let us know if you have any questions by calling Customer Service 800-718-8906 to speak to a Mortgage Expert or see our a Pre Qualification Form – No Credit Check.

Super Jumbo DSCR $4,500,000

Debt Service Coverage Ratio (DSCR) continues to be popular with real estate investors. Below are guidelines using Long- and Short-Term Rental Income.

We can use higher of current market rent or lease stating rental income, depending on the scenario. No limit to number of financed properties and no resverve requirement increase.

DSCR – Short-Term Rental OK

Eligible Transactions: Purchase, Refinance Rate/ Term and Cash Out Refinance

Eligible Borrowers: Natural Person, Business Entity, and Foreign National

Eligible Property Types: Single Family Residence, 2 Unit, 3 Unit, and 4 Units, warrantable Condos and Non-Warrantable condos

Eligible Occupancy: Non-Owner-Occupied Only

Jumbo Loan Amounts: $4,500,000

85% LTV to $1,500,000 – 620 Credit Score

85% LTV to $2,000,000 – 640 Credit Score

85% LTV to $2,500,000 – 660 Credit Score

85% LTV to $3,000,000 – 680 Credit Score

85% LTV to $3,500,000 – 700 Credit Score

85% LTV to $4,000,000 – 720 Credit Score

85% LTV to $4,500,000 – 740 Credit Score

Use short-term market rent – Appraisal Form 1007 or Current lease dollar amount for long-term rental

Debt-Service-Coverage Ratio: .75 – 1.5. Expense Factor 15% on rental income. 85% of short-term or Long-Term rental income. Use Interest-Only Payment to qualify

We allow Title in a Trust, Corporation, or LLC, and don’t report entity Title on the borrower’s credit report

Minimum Credit Score – 600

We use highest credit score out of three.

12-month Short-Term rental payment history and AirBnB internet listing, etc. <12-month history considered case-by-case.

Pre-payment Penalty: 1 year minimum

Term: 40-Year Fixed, 40-Year Fixed Interest-Only, 30-Year Fixed, 30-Year Fixed Interest-Only, 10, 7, and 3-Year ARMs

Stated Income/Verified Assets – California

2024 Update –

Almost all Stated Income loans are for investments properties. This loan is special in that it gives the option for people that can’t or prefer not to verifiy their income to purchase or refinance their primary home in California, Colorado, Florida, Texas, Virgina and Washinton.

Self Employed only

Purpose: Purchase, Rate and Term Refinance and Cash Out Refinance

Jumbo Loan Amounts:

Purchase to $2,500,000

Cash Out Refincne to $1,500,000 “cash-in-hand

Maximum Financing: Purchase and Rate and Term Refunance to 75% LTV. Cash Out Refincne to 80% LTV

Property Types: SFR Attached and Detached. Condos OK with 5% LTV Reduction

Occupancies: Owner Occupied. Second Home to 70% LTV

Credit Score requirement: 680 Minimum

Verified Asset Requirments:For loan amounts less than $1,000,000 – 6 Months Reserves (Housing Expense). For loan amounts greater than $1,000,000 – 12 Months Reserves Reserves (Housing Expense)

Underwriting Notes:

Borrower cannot have more than 10 financed properties. No limit on number of properties owned

Non owner occupied borrowers not allowed

Private mortgage insurance not requied

10 acre maximum on property

Appraisal notes:

Full Appraisal required, interior and exterior with photos of both

Desk review required for all loans greater than $750,000

Property cannot have been on MLS for more than 90 days

No purchase seasoning required for refinance – utilize current market value for LTV purposes

Credit history notes:

Payment history: No 30 day lates within last 36 months on mortgage or rent and consumer debt, revolving or installment

3 year active history on a minimum of 3 accounts (tradelines) required

Income document requirements:

Self Employed: 2 year job history

Business license or CPA letter

2 months bank statements or a VOD, Verification of Deposit, personal or business bank statements OK

Rental Agreements can be qualified as income

Eligible Borrowers: US Citizen, Permanent and Non-permanent Resident Aliens

Gift Funds for down payment OK. 5% borrower contribution required

Any liens on subject property must be a minimum of 6 months seasoned. 12 months on a HELOC with no draws within the last 12 months

reference# 254 525020215

DSCR Super Jumbo to $5,000,000 Cash Out

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

Super Jumbo DSCR to $4,000,000

Our DSCR cash flow loan offers borrowers an interest-only option to qualify using the interest-only payment plus escrows. This is just another benefit of this easy to close loan product specifically for real estate investors to maximize property cash flow.

Business Entity Vesting – OK

DSCR is considered a Business Purpose Loan simplyt because the subject property is an investment property. However, we do have Business Loan Programs for primary residences, too.

Highlights of our DSCR product: Ability to vest in name of LLC or corporation. Loan amounts up to $2 million Cash-out refinance to unlock equity for future investments. Talk to us today about how you can close more deals for real estate investors!

Lite Doc Investor Loan Program

Our DSCR program uses the rental income to qualify for the DSCR for a purchase or refinance investment properties. Available terms: 30-Year and 40-year Fixed Rate including Interest Only. Maximum loan amount $4,000,000.

DSCR / (Debt-Service-Coverage Ratio) – .75% and 1.5%

The DSCR is calculated by dividing the borrower’s net operating income (NOI) by their total debt service. The net operating income represents the income generated from the property, such as rental income, minus operating expenses. Total debt service includes the principal and interest payments on the mortgage, as well as any other debt obligations.

Different Lenders and Different Guidelines | Non-QM Mortgage Broker

Lenders typically have specific DSCR requirements that borrowers must meet to qualify for a DSCR mortgage.

For example, if a lender requires a minimum DSCR of 1.25, it means that the borrower’s net operating income must be at least 1.25 times their total debt service. This ensures that the borrower has a buffer of cash flow to cover their debt obligations and demonstrates their ability to manage the mortgage payments.

Commercial and Mixed-Use Properties – OK

DSCR mortgages are often used for commercial real estate properties, such as office buildings, retail centers, or apartment complexes, where the property’s income potential plays a significant role in determining loan eligibility. By assessing the borrower’s cash flow ability, lenders can mitigate the risk of default and make more informed lending decisions.

Debt service coverage ratio (DSCR) is an important metric for investors, particularly those interested in income-generating properties like commercial real estate. Investors analyze the DSCR to assess the property’s ability to generate sufficient income to cover its debt obligations. Here’s how DSCR is relevant to investors:

Risk assessment: Investors use the DSCR to evaluate the level of risk associated with an investment property. A higher DSCR indicates a property with a stronger ability to cover its debt payments, which lowers the risk of default. Conversely, a lower DSCR suggests a higher risk of potential financial strain and difficulty in meeting debt obligations.

Investment Property Decision-Making Criteria

The DSCR is a crucial factor in determining whether an investment property is financially viable. Lenders often have specific DSCR requirements that investors must meet to secure financing. Investors typically seek properties with DSCRs that comfortably exceed these lender requirements to ensure they have a sufficient margin of safety.

Number Cruching – PITIA (Housing Expense / $Rent Income)

Cash flow analysis: DSCR is closely tied to the property’s cash flow. By comparing the property’s net operating income (NOI) to its debt service, investors can assess whether the cash flow is robust enough to cover the mortgage payments. Positive cash flow, indicated by a DSCR above 1, is generally desirable for investors, as it suggests surplus income after debt obligations are met.

Risk mitigation: A higher DSCR provides a cushion for unexpected events or changes in the property’s income. It helps investors weather potential economic downturns, tenant vacancies, or other disruptions that may impact cash flow. By selecting properties with stronger DSCRs, investors can mitigate risks and increase their chances of a stable and profitable investment.

In summary, the debt service coverage ratio is a critical metric for investors interested in income-generating properties. It helps assess risk, inform investment decisions, evaluate cash flow, and mitigate potential financial challenges.

California Hard Money Jumbo – 80% LTV

Jumbos, Super Jumbos, and Cash-Out – 600 Credit Score

Second Mortgages also Available. Private Money Lender, southern California based with LTVs up to 80% on Investment properties all throughout California. Airbnb rental income, OK. Direct lender out of Irvine California focusing on value-add residential, commercial and Business Purpose mortgages.

Super Jumbo Loan Amounts to $30,000,000

** 80% LTV Hard Money

LTVs are based on borrower’s real estate experience, type of transactions, subject property location, county and zip code, and the overall credit profile of the borrower.

Income, Liquid Assets and Employment

No personal income verification. Liquid Assets for Reduced Investor Pricing and Underwriter Guideline Exceptions.

Loan Scenario Form – Credit Check Not Required

Eligible Property Types

Single Family Residence Attached, (SFR-A), Single Family Residence Detached, (SFR-D), 2-4 Units, 5+ Multi-Family Units, Townhomes, Condominiums (<9 stories), Townhomes, PUD.

Available Terms

Short-term 6-18 months. 2 year and 3 year, and 7 year ARMs are also available for long-term rental investors. Interest-Only (I/O) available on all terms. Pre-Payment options are available for reduced pricing.

Loan Program Benefits

Inhouse control: Servicing, Fund Control, 5-Day Close

Available in the Following States:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin.

Super Jumbo Investor Mortgage | DSCR

Unconventional Real Estate Investor (DSCR) Loan Program

Debt Service Coverage Ratio – 620 Minimum Credit Score

* Maximum LTV 85% Purchase Transactions

* 80% Cash Out Refinance Transactions

* Maximum Loan Amount $15,000,000

* Rental Lease or Appraisal Form 1007

* DSCR – .75% – 1.5%

* No Traditional Income Documentation

* DTI – N/A

* Employment Types: No Job Needed

* Income Documentation Types: N/A

Jumbo DSCR Loan Amounts – Loan-to-Value (LTV) & FICO Scores

Super Loan Amounts: $3,500,000 – $4,000,000

* Purchase: 75% LTV ~ 700 FICO -or- 70% LTV ~ 680 FICO

* Cash Out: 70% LTV ~ 680 FICO -or- 70% LTV ~ 700 FICO

Loan Amounts: $2,500,000 – $3,500,000

* Purchase: 80% LTV ~ 700 FICO -or- 75% LTV ~ 660 FICO

* Cash Out: 70% LTV ~ 720 FICO -or- 65% LTV ~ 700 FICO

Jumbo Loan Amounts: – $300,000 – $2,500,000

* Purchase: 75% LTV ~ 700 FICO -or- 70% LTV ~ 680 FICO

* Cash Out: 75% LTV ~ 720 FICO -or- 70% LTV ~ 700 FICO

Reserves Requirements:

* Purchase 6 Months (PITI/PITIA) to 80% LTV or 3 Months to 75% LTV

* Cash Out – Not Required

Eligible Property Types:

* Single Family Residence (SFR)

* Condos – Warrantable

* No Condotels

Loan Scenario Form – Credit Check Not Required

Eligible Occupancies:

* Non-Owner/Investment Only

* Second/Vacation Homes – Not Eligible

Available Terms:

* ARM: 3 Year ARM, 5 Year ARM, and 7 Year ARM

* 40-year fixed Fully Am or Interest Only Options are Available with 660 Credit Score

Credit Criteria Requirements

Tradelines Requirements:

One – 36-Month payment history

Two – 24-month Previous History Open and Active

Credit Score Requirements

* 620 Minimum

“Housing Event” Credit Seasoning:

* Bankruptcy – 2 years required

* Foreclosure – 2 years required

* Short Sale – 2 years required

* Deed in Lieu – 2 years required

Underwriter Notes and Highlights:

* Mortgage Lates – 12 Months Seasoning

* First Time Home Buyers – OK

* Gift Funds OK with 5% Minimum Borrower Contribution from Family Immediate Member

* Rent-free housing history OK

* Pre-payment Penalty Options

* Investors: 15 financed Real Estate Owned (REO)

Available in the Following States:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin.

Construction Loans

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