Skip to main content
Back to LendSure Blog

LendSure expands residential investor program

May 25, 2022

Have you been turning away investors looking to finance residential properties with 5-8 units? LendSure’s newly expanded debt-service coverage ratio (DSCR) program means you no longer have to send these clients to a commercial mortgage broker.

With LendSure’s expanded DSCR program, your borrower will experience a streamlined loan process that’s based on the property’s cash flow to qualify. No other income source is needed.

There are a few noteworthy differences for this type of loan. For example, acceptable appraisal forms include a 5-8 Residential Appraisal Report or a Narrative Appraisal. Program features also include purchase or refinance and cash out to a maximum of $500,000. Overall, LendSure’s DSCR loans will feel very familiar and simple to navigate.  Even so, an experienced LendSure account executive will be available to assist the entire way.

Having access to this new DSCR feature is a big advantage to working with LendSure. If a borrower goes with a commercial lending program for an 8-unit property, the lender will look at the gross income that the property generates based on the units that are rented. That can cause issues because even moderate vacancies can badly impact the gross income. Even if only 2 of the 8 units are not rented at the time of underwriting, the borrower might not get approved.

We’re looking at the lesser of actual leases or the market rents to qualify the borrower.  If the leases are higher, all we require are 2 months’ rent receipts that match each lease for consideration. We allow up to 2 vacant units, and income will be based on 75% market rents, minus any management fees.  We analyze the 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 what you typically see with a commercial program. Typically, the DSCR ratio needs to be above 1.25. Our program requires a lower ratio of just 1.1 for 5-8 unit properties.

For an explanation of how we calculate DSCR, see this short video. The bottom line: LendSure helps make the process for investor loans easier.

The simplified process for LendSure’s 5-8 unit program is also appealing to savvy borrowers who understand how DSCR programs work. They can enjoy the simplicity of our program and avoid the complexity of a commercial loan. As a seasoned investor, your client won’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 prequalifications.

LendSure’s 5-8 unit DSCR loans are available in loan amounts up to $1.5 million, and for loan-to-value ratios up to 70%.

Other features of LendSure’s newly expanded DSCR program for 5-8 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 and 40-Year Term program
  • FICO as low as 700
  • Rate buydown feature available

With this residential investor program expansion, LendSure is providing more ways for brokers to say “yes”. Not only can we now help brokers and their investors with 5-8 unit properties, but we do it with industry-leading service and exceptional features that will benefit your investor. Our highly knowledgeable and experienced team is ready to help you close your next big DSCR loan.

 

Contact Us: (888) 707-7811