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LendSure’s residential investor program extends credit to seasoned landlords

September 7, 2022
DSCR loans

Do you have clients looking to enter property investment by purchasing multifamily properties with five to eight units? LendSure’s innovative DSCR program means you can serve these clients – without referring them to a commercial mortgage broker.

LendSure has broadened its loan programs for residential investors. Since 2020, the housing market has been on a record-breaking boom. Home values have soared to new highs, and rents have skyrocketed. Those trends are making property investment attractive to a new generation of investors.

With investor demand on the rise, LendSure has expanded our sweet spot to include properties of five to eight units. We offer loans for seasoned investors for properties that generate sufficient cash flow.

One big advantage to LendSure’s program is the debt-service coverage ratio (DSCR) program 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 then you usually find with a commercial program. Most lenders want the DSCR 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 net monthly income by its total monthly payment including TIA. So if your client is considering buying a property that generates $11,000 in net operating income and the debt service is $10,000, the borrower would qualify under LendSure’s more generous DSCR guidelines.

The bottom line: It’s just easier to get investor loans done with LendSure.

The simplified process for LendSure’s 5-8 unit program is also appealing to savvy borrowers who understand how DSCR programs work. They like the simplicity of our program, which strikes a contrast to the complexity of a commercial loan. As a seasoned investor, they don’t have to disclose all of their personal financials to qualify for a loan through this program. Rather, LendSure’s approval is based on the property’s cash flow.

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 $2 million, and for loan-to-value ratios of up to 70 percent. Non-warrantable condos and condotels are eligible for the program.

Other features of LendSure’s newly expanded DSCR program for five to eight units:

  • 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 40-Year Term program
  • FICO as low as 700
  • Rate buy-down with no additional cash at closing feature available

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? Conventional 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.

Contact Us: (888) 707-7811