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.
DSCR Cash Out Refinance
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 PITIA Payment.
Key DSCR Features Include:
Underwriter Highlight Notes:
* 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
Available in the Following States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Kentucky, Maine, Maryland, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Washington.