Have you ever wondered if it’s possible to get a DSCR loan without making a down payment? Are you interested in exploring our new DSCR Mortgage Loan Programs? If you prefer not to be subject to the traditional DTI criteria, then you’ll be happy to know that Valor Lending Group has got your back!
The New DSCR Mortgage Loan Program
If you’re a borrower who dislikes the idea of using DTI criteria or if you don’t meet the requirements of a conventional loan, this program might be perfect for you. The new DSCR loan program focuses on reserves, payment history, and credit depth as its main factors. It offers loan amounts up to $3.5 Million, the option to vest in an LLC, and an assets seasoning period of just 30 days instead of the usual 60 days.
Can You Get a DSCR Loan with No Down Payment?
Unfortunately, a down payment is required for a DSCR loan. However, at Valor Lending Group, we have multiple sources that offer down payments as low as 15%.
What is a DSCR Investment Property Loan?
DSCR investment property loans, also known as “rental loans” or “investment property loans,” do not consider a borrower’s income in the traditional sense. Instead, these loans are based solely on the monthly rental income generated by the property. For example, if a property generates a monthly rental income of $2,000, that amount would be considered the qualifying income. The primary requirement for these loans is that the monthly rents cover the monthly expenses. It’s as simple as that. Unlike traditional mortgage lenders, DSCR investment property lenders do not require income verification or any documentation such as tax returns, W-2s, or pay stubs. The property’s cash flow is the only income considered.
Why Use a DSCR Investment Property Loan?
Traditional mortgage lenders typically require tax returns, W-2s, and paycheck stubs to determine an individual’s monthly income. However, self-employed borrowers and real estate investors are at a disadvantage because traditional lenders look at net income on tax returns. Rental loans, on the other hand, provide a great alternative for real estate investors to qualify for both acquisitions and refinances without the need for bank statements, tax returns, or debt-to-income ratio calculations. If you fall outside the traditional underwriting guidelines but are looking for long-term loans with attractive rates, the DSCR investment property loan is the solution you’ve been searching for. It offers flexibility, requires less documentation than hard money loans, and provides rates closer to traditional financing. This financing option is constantly evolving and offers a powerful way to expand your real estate portfolio.
DSCR Investment Property Loan Highlights:
- No Tax Returns
- No Employment Verification Required
- No Income Verification Required
- No Debt-to-Income Ratio Calculations
- Cash Flow based on Subject Property Rents (If the property is vacant upon purchase, market rents from the appraisal will be used to calculate DSCR)
- Available for Single-Family Residences, Condos, and 1-4 Unit Properties
- Maximum Loan Amount of $7.5 Million
- Unlimited Financed Properties Permitted
At Valor Lending Group, we are dedicated to helping you with all your mortgage loan needs. We offer a wide range of mortgage loan products to suit your unique requirements. Whether you’re in need of hard money loans, stated income loans, cash flow loans, or any other type of loan, we have you covered. Contact us today to discuss your scenario and let us provide you with immediate attention! Remember, rates and terms are subject to change without notice.
*[DTI]: Debt-to-Income Ratio