BUY OR REFINANCE YOUR INVESTMENT HOME. NO TAX RETURNS REQUIRED! LTV UP TO 75% FOR CASH OUT OR 85% FOR HOME PURCHASES.
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Debt Service Coverage Ratio (DSCR): No-Income Mortgage Loan for Real Estate Investors!
Discover the perfect mortgage solution tailored for real estate investors! Our Investor Solutions loan program requires no personal income verification, offering a hassle-free experience for purchasing or refinancing investment properties. Qualify based on the property’s projected rental income, eliminating the need for tax returns. Skip high rates, lengthy approval processes, and strict lending criteria. With our Investor Solutions loan program, you can qualify based on your property’s cash flow, not your income.
HOW IT WORKS
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Our team of licensed loan officers is prepared to assist you with any inquiries you may have. Applying over the phone can be completed in as little as 10 minutes.
Secure Your Approval
Once you submit your loan application, our team will thoroughly review it, conduct a property appraisal, and complete the underwriting process to ensure your approval.
Secure Your Funds
Once all requirements have been met and we receive clearance to proceed, we will prepare the necessary loan documents. You will then sign the loan documents, and upon completion, your loan will be funded.
Why Prime Choice?
At Prime Choice Funding, our focus is on meeting the unique requirements and preferences of our customers when it comes to finding the perfect loan option. With a team of highly experienced Loan Officers and dedicated Operations professionals, we are committed to assisting homeowners in realizing their financing goals. Our mission is to deliver exceptional service and empower homeowners to achieve their financial aspirations.
Your Rental/Investment Property Journey Starts Here – Our Team is Ready to Assist!
What Our Clients Are Saying
Communication and transparency are cornerstones of how we get home loans done for you, our client. People turn to Prime Choice for a quick, hassle-free mortgage experience.
Frequently Asked Questions
DSCR loans are ideal for individuals without traditional proof of income, such as W-2s, pay stubs, and tax returns. They are suitable for those buying and flipping houses, as well as investors acquiring and holding rental properties for long-term investments.
DSCR loans differ from hard money loans as they typically have lower down payment requirements and interest rates. They are available at some local lenders and offer more favorable loan terms, making them an attractive alternative for real estate investors.
- The DSCR formula calculates the ratio by dividing annual gross rental income by property debt obligations.
- Gross rental income is determined based on lease agreements or appraiser’s rent schedule.
- Annual debt includes principal, interest, taxes, insurance, and HOA payments.
- DSCR is calculated as the ratio of gross rental income to annual debt.
- Net operating income (NOI), capitalization rate (Cap Rate), COCR, and ROI are not considered for DSCR loan qualification.
- Example: A real estate investor might be looking at a property with a gross rental income of $50,000 and an annual debt of $40,000. When you divide $50,000 by $40,000, you get a DSCR of 1.25, which means that the property generates 25% more income than what is necessary to repay the loan. This also means that there is a positive cash flow in the lender’s eye.
DSCR loans do require decent credit scores. However, you can get a debt service coverage ratio loan with a score of 620 and above. Naturally, the higher your credit score, the better your interest rate and loan terms are likely to be.
To apply for a DSCR loan, you’ll typically need to provide documentation related to the investment property, such as rent rolls, property income and expense statements, and lease agreements. While personal income verification is not required, having a strong financial profile can still be beneficial during the application process.