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3 Reasons to Tap Into the Non-QM DSCR Market in 2023

November 8, 2023

It’s no secret – the real estate market has slowed over the last few months. With high prices and even higher interest rates, buyers across the country are hesitant to pull the trigger on their new home or investment property. But that doesn’t mean opportunities have vanished. In fact, now’s the perfect time to tap into another segment of your mortgage business: Non-QM DSCR loans.

Debt-Service-Coverage-Ratio (DSCR) loans are made for investors who want to finance investment properties. These can range from single-family/2-4 unit and 5-8 unit properties. As the market shifts and investors take advantage of today’s renter society, there’s going to be an increase in investment property purchases. It’s crucial that you incorporate these solutions to not only meet the demand, but boost your mortgage business in the process.

Here are three reasons why you should be adding this Non-QM alternative solution to your product offering:

1. You Can Expand Your Network

Instead of only working with homebuyers, you can now work with investors – from newcomers to seasoned pros. With LendSure’s DSCR solution, there’s no limit on the properties owned, and investors can finance up to 10 (yes, 10!) properties at once. Other lenders only offer DSCR financing for 1-4 units, but at LendSure, your investor clients can also purchase and refinance 5-8 unit properties. This is a major advantage if you want to reach investors in today’s market.

Not sure where to look for investor clients? Pro-tip: Start with your current contact list! You may already work with borrowers who are interested in financing an investment property. From there, you can continue to grow your investor contacts by referrals. It’s that simple!

2. You Can Offer Clients More Flexibility
The good thing about DSCR loans is that it allows you to work with borrowers who require a dash of flexibility. By focusing on the property’s cash flow, no additional income documents are required. In this case, the DSCR ratio itself serves as their income indicator!  A DSCR loan solution is the perfect financing option for those non-bankable individuals.

Here’s how it works: Instead of analyzing tax returns or other income docs, we perform a DSCR-based underwrite to examine the property’s cash flow. By measuring the property’s cash flow, we can determine whether or not the property can generate sufficient income to cover loan payments. Watch this video to learn how we calculate DSCR.

The formula we use is simple:

This is a better way to qualify borrowers who may not meet traditional lender requirements.

3. You Can Diversify Your Mortgage Business

As a solution provider, you want to ensure you offer a wide range of mortgage solutions. Only then will you get access to a wider range of clients. Adding Non-QM products to your offerings will allow you to diversify and take your mortgage business to the next level.

Borrowers will quickly know that you’re the go-to mortgage pro for not just home purchases, but also investment properties ensuring a steady stream of business.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan. We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.


Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.



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