DSCR New Unique Highlights

LLCs Allowed for all Business Purpose Loans

• Layered LLCs are allowed

• LLC will not report to credit

• Only require 51% total ownership to be on a loan

Loans Close as a 10-year IO or a 30-year Fixed

• 10-year IO converts to a 20-year fixed at the end of the interest only period (rate remains fixed)

• 30-year fixed P&I payment

Rural Properties are Uniquely Able to Qualify for a DCSR Loan

• 2 comps in 5 miles

• Surrounding area is over 25% developed

Flexibility with Credit

• Qualify on highest middle score client (DSCR loans only)

• 3 FICO scores (minimal credit)

• Rescore or Dispute credit

• 1 tradeline for 12 months and proof or primary payment or 1 tradeline for 24 months

• FTHB are allowed

Down Payment Flexibility and Seasoning of Funds

• 100% gift for Down Payment and Closing Cost

• 6% seller contribution allowed

• Monies seasoned 30 days at closing

• Large deposit is 10% of loan amount (DSCR loans only)

• Monies can come from business accounts

The Most Flexible Ways to Qualify the DSCR Borrower

• Use our DSCR Calculator for 6 DSCR Programs

  • Elite DSCR 1.25+

  • Standard DSCR 1.00+

  • Low Ratio .75 +

  • No Ratio everything below .75

  • Short Term

  • DSCR + Asset Utilization

• All loans can qualify as Interest only (ITIA)

  • 75 LTV purchase

  • 70 Cash-out

• Units and entire properties can be delivered vacant

  • Explanation for vacant units should be explained

For the DSCR Client: Qualifying Income for Rent can be Generated in Many Ways

• Short-term Rentals

  • Have appraisal provide a short term 1007

  • Or state what short term rental is for the market + AIR DNA = 80% lesser of two

  • Most recent 12 months bank statements or 3rd party rental /management

• (LTR) DSCR income is calculated on the market rent 1007 or lease whichever is less

• (LTR) DSCR income calculated on verified lease not market rent 1007

  • Executed long term market lease with proof of first and security deposit

  • Lease can be greater then market rent on  1007 with no “reasonable” cap

• (LTR) DSCR income calculated + Asset utilization

  • Long term market lease + Assets / 60 months

  • Example:

    • 1007 market rent is $2500

    • Assets verified are $200,000/60 months = $3,333

    • Total income for $5833

DSCR New Unique Highlights:

• No Seasoning on Cash-Out Refinance

  • 720 FICO 3yr PPP 75 LTV

  • 680 FICO 3yr PPP 65 LTV

• 80 Cash-out DSCR  (case by case)

  • 1.15 DSCR

  • Experienced Investor

  • PPP required

• Lower FICO limits on DSCR 1.0 and greater

  • 620 FICO up to $1M

  • 640 FICO up to $3M

• 85 LTV

  • Purchase or R&T

  • Max loan amount $1M

  • 6% seller contribution

• ADU Income allowed

  • Allowed up to 1 unit on SFR

  • Must have similar comps

• ITIN Clients can use DSCR Program

  • Max LTV 75

  • DSCR 1.0

  • FTHB ok

Loans For Foreign Nationals – Qualify for investor and second home

• Accountant letter can be used for Self Employed income

• VOE for a Wage Earner

• Asset Utilization – assets can remain in country of origin

• DSCR ok

Additional Programs and when to Use them:

Investor Full DOC

• IO

• 80 LTV Cashout / 85 Purchase and R&T

• DTI 50%

• Loan amount t up to $3M

• Rural and Modular

• Thin Credit