MENU

  • HOME
  • APPLY/ LOGIN
  • CONNECT
  • LOAN PROGRAMS
  • RESOURCES

CALL TODAY:
(813) 928-9610

FLORIDA
SINCE 1995
DIRECT LENDING

CLICK TO CALL TODAY:
(813) 928-9610

BUYING AN

INVESTMENT HOME

JUST GOT EASIER.

This is not a commitment to lend.  Not all borrowers will qualify for the loan programs listed.  All program terms and conditions are subject to change and may be discontinued without prior notice. Contact loan originator for program questions and scenarios.  

GET PRE-APPROVED TODAY

3 easy steps.  No cost/obligation

DEBT SERVICE COVERAGE RATIO (DSCR) LOANS

RESIDENTIAL INVESTMENT LENDING BASED ON THE CASHFLOW POTENTIAL OF THE HOME.

 

DESIGNED FOR SEASONED INVESTORS LOOKING FOR A LOW-DOCUMENTATION PROGRAM, BUT WITHOUT THE HARD MONEY INTEREST RATES AND TERMS.

 

This is a called a DSCR (Debt Service Coverage Ratio) Program.  When the appraisal is ordered, a licensed appraiser performs a standard residential appraisal report, along with a supplemental report called a Market Rental Analysis which provides the average market rent for similar homes in the surrounding area.

This number is then compared to the full monthly payment on the new loan.  (example: A ratio of 1.0 means that the rent supports 100% of the new payment)  

GET PRE-APPROVED TODAY

3 easy steps.  No cost/obligation

MESSAGE US

CLICK TO CALL

(813) 928-9610

HAVE A QUESTION?

At a Glance

Minimum Down Payment

20% - for seasoned investors

30% - for new investors

 

Minimum Down Payment to avoid PMI

N/A

 

PMI (Private Mortgage Insurance)

None

 

Minimum mid-credit score

620 - Max 70% LTV

660 - Max 80 LTV

 

Min/ Max Loan Amount

$100,000 - $3MM

Loan Repayment Terms

30 years

Amortization

30 Year Fixed Rate 

Prepayment Penalties

Optional, equal to 6 months interest on 80% of the original principal balance.

3 Years, 2 Years, 1 Year, or None
(see Loan Originator for Details)

 

Recent Housing Events

Minimum 36 months waiting period must elapse for prior Bankruptcy 7, Foreclosure, Short Sale or Deed-in-Lieu of Foreclosure
(See Loan Originator for details)

 

Max Seller Contributions

2% for Investment Homes

 

Escrows

Escrows for Property Taxes and Home Insurance required

 

Occupancy

Primary Residence / Second/Vacation Home / Investment

 

Acceptable Property Types

Single Family, Townhome/ Villa/ 2-4 Unit Multi-Family/ Condominium/ Condotel or Non-Warrantable Condominium

 

UNACCEPTABLE Property Types

Manufactured Homes, Modular Homes, Mobile Homes, Raw Land, Condotels, Log Homes, Dome Homes, Tiny Homes, Commercial Mixed-Use

House for rent DSCR loan unconventional lending Derek Bissen Florida nonQM

The loan terms for a DSCR Loan are determined by the following criteria:

  • DSCR Ratio - (how well the property cash-flows) - We will finance properties with a ratio of 0.75 and higher.
  • The applicant's middle FICO score
  • Size of the down payment.  
  • Prepayment Penalty (optional) - Options include: no prepayment penalty, 1 year, 2 year, or 3 year (ask your Loan Originator for details)


The minimum down payment for seasoned investors is 20%. For first-time investors, the minimum down payment is 30%. (a seasoned investor is defined as an applicant with 12 months of landlord experienced in the past 12 months)

Applicants must have 3 active credit tradelines appearing on credit history for the most recent 12 months, *OR* 2 active tradelines for the most recent 24 months. Applicants must have prior homeownership experience in the most recent 3 years, and have a clean, verifiable residency payment history in the most recent 12 months.

 

If the DSCR Ratio is ≥ 1.00...

  • The maximum LTV is 80% for applicants with a middle FICO of 700 or higher for purchase and rate & term refinance transactions.  (max LTV of 75% for cash-out transactions)
  • The maximum LTV is 80% for purchase for applicants with a middle FICO of 660 or higher for purchase and rate & term refinance transactions. (max LTV of 70% for cash-out transactions)
  • The maximum LTV is 80% for purchase for applicants with a middle FICO of 660 or higher for purchase and rate & term refinance transactions. (max LTV of 75% for cash-out transactions)

If the DSCR Ratio is < 1.00...

*NOTE: The minimum acceptable DSCR ratio is 0.75 *

  • The maximum LTV is 75% for purchase for applicants with a middle FICO of 660 or higher for purchase and rate & term refinance transactions. (max LTV of 70% for cash-out transactions)
  • The maximum LTV is 75% for purchase for applicants with a middle FICO of 660 or higher for purchase and rate & term refinance transactions. (max LTV of 65% for cash-out transactions)
  • The maximum LTV is 80% for purchase for applicants with a middle FICO of 620 or higher for purchase and rate & term refinance transactions. (max LTV of 60% for cash-out transactions)

If you have questions about this program, please call us today at (813) 928-9610 for more information or apply today.

 

Here is the formula to determine the DSCR ratio:

       

GROSS RENTS ÷ TOTAL HOUSING PAYMENT

 

Total Housing Payment = PITIA
(Principle + Interest + Property Taxes + Insurance + Association Dues)