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DSCR – A LendSure Program Built for Investors

November 9, 2022
DSCR Loan Programs - LendSure provides landlords with the multifamily lending services they need to succeed.

The housing market has slowed in recent months, and values of single and multifamily properties have retreated a bit.

But amid all the headlines about a looming recession, it’s worth remembering that the fundamentals of housing supply and demand still favor landlords. Despite the cyclical ups and downs of the housing economy, the shortage of housing units remains very real.

That’s why residential investing remains a compelling proposition. If you have clients looking to purchase multifamily properties, LendSure’s innovative DSCR loan program means you can serve these clients – and build a pipeline of future business.

LendSure has broadened its loan programs for residential investors. First-time investors are eligible for a loan so long as the property generates sufficient cash flow and has four or fewer units. For seasoned investors, we’ll make loans on properties with up to eight units.

With LendSure’s debt-service coverage ratio (DSCR) program, you can get loans closed—even for future landlords who have yet to build their portfolios of rental properties.

One big advantage of LendSure’s program is the DSCR feature. If a borrower goes with a commercial lending program for an eight-unit property, the lender will look at the gross income that the property generates based on the units that are rented.

That’s a challenge because even a few empty apartments can kill the deal. If just two of the eight units are not rented at the time of underwriting, the borrower might not get approved.

LendSure looks at market rents to qualify the property (instead of considering only currently rented units to support the loan amount), making it easier to qualify. In other words, not all units need to be rented. LendSure underwrites the investment property based on both current and future rent.

LendSure offers another big advantage compared to a commercial lending program: The debt-service coverage ratio to qualify is lower with LendSure than you usually find with a commercial program. Most lenders want the DSCR loan to be above 1.25. Our program requires a ratio of just 1.1 for 5-8 unit properties.

For an explanation of our DSCR loans, see this short video. The DSCR is calculated by dividing the property’s monthly income by its total monthly payment, including taxes and insurance. So if your client is considering buying a property that generates $11,000 in monthly income and the debt service is $10,000, the borrower would qualify under LendSure’s more generous DSCR guidelines.

The bottom line: real estate investing remains a compelling opportunity—and it’s just easier to get investor loans done with LendSure.

Other key benefits include less documentation and fast pre-approvals—borrowers get an answer from us within a few days.

LendSure’s DSCR loans are available in loan amounts up to $1.5 million and for loan-to-value ratios of up to 80 percent. Non-warrantable condos and condotels are eligible for the program.

Other features of LendSure’s DSCR program:

  • Cash-out up to $500,000
  • Close multiple loans for the same investor at the same time
  • No limit on the number of properties owned and can finance up to 10 properties for one investor
  • Industry-leading funding times
  • Qualify on interest-only payments—excellent for qualification and cash-flow purposes, particularly with our 10-Year IO period on our Fixed Rate 40-Year Term program
  • FICO as low as 640
  • Rate buy-down feature available
  • NO reserves are required on LTV’s <65%

Your LendSure account executive can walk you through the process and will be available to assist the entire way.

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 a unique circumstance seeking a loan. We work hard to offer our common-sense 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 grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Contact Us: (888) 707-7811