Unconventional Mortgages (800) 718-8906

Unconventional Mortgages and Loans

(800) 718-8906

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


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.

Alternative Income Documentation

Contact a Loan Officer

Non-Qualified Mortgage Lending

Hard Money Loans

Investor Loans

Investment Property Loans