
As the real estate market continues to shift, investors are looking for new ways to expand their portfolios. High interest rates and even higher home prices may mean it’s more difficult to secure a conforming loan for an investment property. Fortunately, there is an alternative program that can help.
Enter DSCR loans.
Debt-Service-Coverage-Ratio (DSCR) loans are specifically designed for investors who want to finance investment properties. These can range from single-family, 2-4 unit and 5-10 unit properties. The best part? This product offers investors more flexibility than a traditional loan can provide.
Want to confidently expand your loan offering toolkit this year? Here’s how LendSure’s DSCR loan program can help!
Faster & Flexible Process
The reason so many investors love this program is the ease in which they can secure financing. Instead of providing income or tax return documentation, investors can qualify for financing by simply using the property’s cash flow. This is ideal if your clients generally struggle to provide tax returns or have a complex financial history.
The way it works is simple: Instead of analyzing tax returns or other income docs, we perform a DSCR-based underwrite to examine the property’s cash flow. By measuring the cash flow, and essentially the property’s performing assets, we can determine whether or not it can generate sufficient income to cover loan payments.
The formula is as follows: Gross Rents divided by PITIA (principal, taxes, interest, insurance, and association dues), which equals the Debt Service Coverage Ratio.
Expanded Portfolio
Real estate investors know the importance of diversifying their portfolio. With this program, they have a wider range of options available to them. Whether they want to invest in a single-family home or perhaps they want to venture into the multifamily space, there are more opportunities to generate additional income.
With LendSure’s program, investors can finance 1-4 unit properties as well as 5-10 unit properties, including non-warrantable condos and condotels. Besides financing multiple types of properties, investors have no limit on the number of properties owned and can finance up to 10 (yes, 10!) per one investor.
Closing with LendSure
Securing financing can be a daunting process for real estate investors. It’s generally tedious and comes with stringent guidelines, but if you partner with LendSure, you can rest assured your clients will get fast and hassle-free financing.
Other DSCR Loan Program Highlights:
1-4 Unit Properties
- Loan amounts up to $1,500,000
- Cash-Out up to $500,000
- Up to 85% LTV for Purchase
- Up to 80% LTV for R/T Refi
- Up to 75% LTV for Cash-out Refi
- Credit score as low as 660
5-10 Unit Properties
- Loan amounts up to $2,000,000
- Cash-Out up to $500,000
- Up to 75% LTV for Purchase and R/T refinance
- Up to 60% 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 common-sense 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.