The mortgage industry is teeming with opportunities for investors.
And as a mortgage pro working in this lucrative space, it’s up to you to guide your clients and show them the loan programs that work (and don’t work!) for their business ventures. You likely work with a wide range of borrowers – from newcomers who are just starting to grow their portfolio to expert investors with multiple income-generating properties. Whatever their background is, they all likely want to secure fast and flexible funding without having to deal with strict bank requirements.
That’s where we come in.
At LendSure, our Rental Property Cash Flow program can provide you and your investor clients an alternative solution to finance investment properties with common-sense underwriting, flexible terms, and first-rate customer service. And the best part? We’ve designed this program to make it easier for brokers like you to close deals quickly and help you grow your mortgage business fast.
But before you start closing these deals, here’s a quick breakdown of everything you need to know about our Rental Property Cash Flow solution.
1. What is a Rental Property Cash Flow (DSCR) Loan?
A Rental Property Cash Flow Loan is an alternative and simpler way to secure a – you guessed it – rental property. Also known as a Debt-Service-Coverage Ratio (DSCR) loan, this program allows investors to qualify for financing without providing tax returns or other income documentation.
It’s simple – instead of examining the borrower’s personal sources of income, we perform a underwrite that analyzes the property’s cash flow. By determining the property’s DSCR, we can measure whether or not the property has the ability to generate enough income to cover the loan payments.
Here’s a simple calculation that we do to determine a property’s DSCR:
|=||Gross Rent Lease or Form 1007/216|
(Principal, Interest, Taxes, Insurance, Association)
In other words, if your borrower has a property with a high net operating income compared to its debt service, they can easily qualify for a loan – without providing any other personal income docs.
It’s ultimately an easier way for investors to qualify for a loan because they don’t have to rely on other income sources.
Speaking of borrowers…
2. Who benefits from a DSCR program?
Each borrower is unique in their mortgage needs. While some investors may have high and consistent monthly income and can provide full documentation to easily qualify for a loan, others need a dash of flexibility to secure that dream investment property.
Our Rental Property Cash Flow loan can help these investors secure financing without having to provide other income sources. This solution is also made for your clients who have a robust portfolio and want to fund multiple investment properties (up to 10!) at once.
And it’s true that traditional banks might be the first stop for investors looking for financing, but it’s not always the best decision – especially if they want fast and flexible funding. Unlike alternative lenders, banks are known for having rigid guidelines and long approval processes since they may have to consult with multiple loan committees before extending an approval.
With minimal conditions and a simple approval process at LendSure, your borrowers will have a faster and smoother closing.
3. How can a DSCR program help your mortgage business?
If you’re looking to diversify your mortgage offerings, a Rental Property Cash Flow solution can help you reach a wider range of borrowers investor space.
With this program, you can provide your clients with a strong mortgage financing option, even for 5-8 unit properties. And besides reaching more types of investors, this solution is also designed to help you close fast.
We know timing is crucial for mortgage pros in today’s market. That’s why we’ve created a program that qualifies borrowers fast so that you can quickly move on to your next deal without worrying about long approval processes.
Since many property investors don’t stop at just one property, you have the potential of a stream of new loans in the years to come.
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, the tools, support, and the 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!
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.