What is a DSCR Loan?
Investor loan (DSCR) is designed specifically for property investors. Your clients can build their portfolios faster by qualifying off the property cashflow using the Debt Service Coverage Ratio (DSCR) for Purchase or Refinance loan types.
What is a DSCR Loan?
A DSCR loan is designed for real estate investors, allowing them to qualify based on the cash flow generated by the property rather than their personal income. The DSCR is calculated by dividing the gross rents by the principal, interest, taxes, insurance, and association dues (PITI(A)). This type of loan provides flexibility and is particularly beneficial for investors who may not meet traditional lending criteria.
Benefits of DSCR Loans
- Higher Loan Amounts: Borrow up to $2,500,000 to finance your investment properties.
- Flexible Credit Requirements: Credit scores as low as 620 FICO are acceptable, making it easier to qualify.
- Diverse Property Types: Finance single-family residences, 2-4 unit properties, and both warrantable and non-warrantable condos.
- Entity Closures: Close loans in an LLC or Corporation to simplify property management and liability.
- 1031 Exchange Compatibility: Use DSCR loans for 1031 exchange transactions to defer capital gains taxes.
- Unlimited Properties: No limit to the number of financed properties, enabling portfolio expansion.
- Cash-Out Refinancing: Access equity with cash-out refinancing options, available up to 75% LTV with a 700 FICO score.
- Interest-Only Options: Reduce monthly payments with interest-only loan options.
No Ratio DSCR Loans
For investors seeking even more flexibility, M & M Mortgage LLC offers No Ratio DSCR loans. These loans eliminate the need for traditional income verification, employment documentation, or strict debt-to-income ratios. This option is ideal for experienced investors looking to streamline their financing process and secure funding without traditional barriers.
5-8 Unit DSCR Loans
Expand your investment portfolio with our 5-8 Unit DSCR Loans, tailored for experienced investors. These loans offer:
- Loan amounts up to $2,000,000
- Minimum credit score of 700
- Up to 75% LTV
- Unlimited number of properties owned
- Cash-out up to $500,000 with a DSCR of 1.15 or greater (1.00 for purchase, rate & term)
- Interest-only options
- Only 30 days of asset verification required
- As low as 9 months of reserves
Why Choose M & M Mortgage LLC?
At M & M Mortgage LLC, we pride ourselves on our deep understanding of the Twin Cities real estate market and our commitment to helping investors succeed. We walk our clients through every step of the DSCR loan process, ensuring they understand the benefits and intricacies of this financial product. Our team is dedicated to providing the best service possible, making your investment journey smooth and rewarding.
Whether you're a seasoned investor or just starting, DSCR loans can be a game-changer for your rental business. Contact M & M Mortgage LLC today to learn more about how we can help you unlock the full potential of your investment portfolio with DSCR loans. Let's take your investment strategy to the next level together.
*Please speak with one of our Mortgage Consultants for specific Program details.
