Want to stand out in today’s mortgage industry? The secret is expanding your product offerings to reach a wider range of clients. Sure, conforming loans may work with some borrowers, but not all clients can access traditional lending. Others may need some additional flexibility to help them secure funding. With Expanded Investor Loans (or Debt Service Coverage Ratio of DSCR Loans), you can tap into the real estate investor market and start growing another segment of your mortgage business.
DSCR Loans are designed specifically for real estate investors who want to finance investment properties. These can range from single-family/2-4 unit and 5-10 unit properties. One of the reasons why brokers are adopting this Non-QM solution is because it offers faster and more flexible funding for non-bankable clients. And now more than ever, investors are looking for more fruitful opportunities that will help them secure properties.
By partnering with LendSure, you can access this alternative loan solution and help your clients confidently close deals – even during unpredictable market fluctuations. Here are three ways Expanded Investor Loans (DSCR) can help you and your clients this year:
Flexible Borrower Profile
Securing a loan at LendSure is not a tedious process! While traditional lending requires borrowers to submit tax returns, W-2s, and other personal documents to determine eligibility and secure funding, DSCR does not.
In fact, your client does not have to submit any of these personal documents if they are unable to. That’s because we analyze the income generated by the investment property itself. This opens the door for you to reach more types of clients like self-employed borrowers (freelancers, realtors, contractors, or even gig workers). While it may be more difficult for these types of borrowers to provide traditional docs due to fluctuating profits and limited history of tax returns, it doesn’t mean they don’t have the funds to secure a loan. With DSCR loans, they get more flexibility.
Easier Qualification
Speaking of fewer documents, a major benefit of incorporating DSCR loans into your mortgage toolkit is the qualification process. Don’t expect long delays to hold you and your clients up. Instead of providing income or tax return documentation, investors can qualify for financing by simply using the property’s cash flow. That’s right – at LendSure, we perform a DSCR-based underwrite to examine the property’s cash flow in lieu of analyzing tax returns or other income docs.
The formula we use is simple:
With this formula, we measure the cash flow along with the property’s performing assets to determine whether or not it can generate sufficient income to cover loan payments. Not only does this streamline the underwriting process, but it also makes it easier for you to deliver closings to your non-bankable clients.
Expanded Property Types
Real estate investors are often looking for opportunities to expand and diversify their portfolio. While some may be focused on financing single-family rental properties, others may want to try their hand at more property types.
If you partner with LendSure, you can offer your clients a wider range of options. From 1-4 units to 5–10-unit properties (including multi-family units, commercial spaces, non-warrantable condos and condotels), there’s more to choose from with our team. Additionally, borrowers have no limit on the number of properties owned and can finance up to 10 for just one investor.
Closing with LendSure
Every broker knows the transaction process can be tedious. If you want to streamline closing deals for you and your clients, choose LendSure as your go-to partner for Non-QM loans. You can expect to serve more types of borrowers, an easier qualification process, and expanded property types for clients to choose from. Besides that, we allow interest-only payments for certain clients.
Other Expanded Investor Program highlights:
1-4 Unit Properties
- Loan amounts to $3,000,000
- Cash-Out up to $500,000
- Up to 85% LTV for Purchase
- Up to 75% LTV for R/T or Cash-out Refi
- Credit score as low as 660
5-10 Unit Properties
- Loan amounts to $2,000,000
- Cash-Out up to $500,000
- Up to 75% LTV for Purchase
- Up to 70% LTV for R/T refinance
- Up to 65% LTV for Cash-Out Refinance
- Credit score as low as 700
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, 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 benefit from a commonsense approach to lending? Contact us today to learn more about Nnon-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
