YOUR PREMIER DSCR INVESTMENT LENDER

 

Buy Investment Homes with No Income or Employment Documentation

The DSCR loan uses the cash-flow generated by the investment property to qualify your loan.  Employment and tax documents are not required.

 

A LOAN DESIGNED FOR INVESTORS

DSCR Loans are ideal for investment properties such as long-term rentals and short-term rentals - like an Airbnb and Condo Hotels.

At Sol Mortgage, we understand that closing your loan on time, with the best rate, is the key to investment success. Our DSCR loans use the cash flow from the subject property to qualify you for the loan.  No personal income documentation is required. Not even a job.

What is a DSCR Loan?

A Debt Service Coverage Ratio, or DSCR, Cash Flow loan is an investment property mortgage that borrowers qualify for based on the cash-flow of the rental property. This means that there are no income requirements for a DSCR mortgage. Instead, lenders use the estimated market rent for an investment property to determine if your expected rental income will cover your monthly loan payments. This is different from a traditional loan option that qualifies you based on employment and debt qualifications.

Why work with Sol Mortgage for your investment needs?

  • Direct Lender: You deal directly with us through the entire process, resulting in lower rates and fast closings.

  • A dedicated team of DSCR investment loan experts: We help you through the process.

  • Outstanding Ratings: We're proud to be recognized as a top-rated lender on Yelp, Bankrate, Experience.com, and LendingTree by our satisfied customers.

  • Rates: We pride ourselves on offering the most competitive rates to help maximize your investment potential.

  • DSCR Loan Pioneers: We pioneered the DSCR product and were one of the first to offer it to individual investors for residential real estate 15+ years ago.  To date, we have closed more than $1.2 Billion in investment property loans.

Our DSCR Loan Features:

  • Loans to $3.5M

  • No minimum DSCR ratio required (limited restrictions)

  • No income and no job required

  • Close in your Personal, Trust, Corporation or LLC’s name

  • Condo Hotels

  • Airbnb Rentals

  • Foreign Nationals

  • Transfer appraisals accepted

  • Gift funds allowed after 10% from borrower's own funds

  • First-time investors OK: Up to 75% LTV

  • Texas cash-out is allowed

  • 6-month title seasoning to use new appraised value for cash-out

Build Wealth with Investment Properties

Buying an investment property allows you to generate income through the renting or resale of a property that isn't your primary residence. To help make the buying process easier, JMAC Lending developed a Non-QM Cash-Flow Loan, a product that uses Debt Service Coverage Ratio (DSCR).

SOL Mortgage Loan Originator John Spannagel says DSCR loans are key for investors when analyzing real estate investment opportunities.

“DSCR loans do not require borrowers to qualify on their income but rather on the rent forecasts on the subject property,” he says.

“It is a way to buy an investment property based on the merit of the rental rather than the buyer. It’s a smart investment product.”

What is DSCR and how is it calculated?

DSCR is the ratio of Net Operating Income (NOI) to Debt Service (the mortgage payments).

As an example, the borrower has an investment property in mind that has a monthly lease income of $4,000 and a monthly PITI debt of $3,200. (PITI stands for Principal, Interest, Taxes and Insurance. These are the four basic elements of a monthly mortgage payment.) The DSCR in this example is 1.25. This means the property generates 25 percent more income than is needed to pay the debt obligation, therefore generating positive cash flow. This valuation provides the lender with a quick tool to break down the borrower’s ability to sustain and pay off the debt obligation on a real estate investment.

“What is so great about our DSCR product is that it offers no minimum DSCR, with some restrictions,” Spannagel says. “Most lenders require a minimum DSCR of 1.2. JMAC’s DSCR has no minimum DSCR.”

What is the appeal of a DSCR loan?

One of the big benefits of a DSCR loan is that a personal income calculation or employment is not required. The lender is interested in the cash flow the subject property is calculated to generate. JMAC Lending’s Non-QM DSCR features:

  • No income verification – qualify on subject property income

  • No employment required

  • Leases not required on purchase loans

  • No lease required if not rented

DSCR loans offer a lot of benefits in today’s aggressive housing market.

“Without the income verification and job history check, this loan can lead to a quicker close,” Spannagel says. “Because investment properties can bring bidding wars in today’s hot market, the ability to close the loan quickly and smoothly is extremely valuable.”

Here are a few additional benefits of the DSCR Non-QM Loan:

  • Transfer appraisals accepted

  • Gift funds allowed after 10% from the borrower’s own funds

  • Only 30-days of assets docs. for closing funds and reserves

  • First-time investors: Up to 75% LTV

  • Cash out can be used to meet reserve requirements

  • Texas cash-out is allowed

  • Closed in LLC

  • 30-year fixed, SOFR ARMs 5/6 & 7/6 with Interest-Only options

  • Purchase up to 80% LTV and cash-out up to 75% LTV

  • SFR, condo, 2-4 units and short-term rentals

Get started today. Contact us to learn more. We are here to help.

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Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Not all applicants will qualify. Borrowers must meet program guidelines.

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