DSCR LoansA limited documenation loan, the DSCR product uses the income and expenses associated with the subject property. This product is for investors only and a good solution for a self employed borrower or one that has a credit history that may eliminate them from qualifying for a conforming loan.
- Borrower Type: US citizens and Permanent Resident Aliens. LLC with personal guarantee.
- Debt Service Coverage Ratio (DSCR): Rental Income divided by PITIA Rental Income Verification:
- Lower of Gross Rent lease or Form 1007/216
- Purchase: Market rents FNMA form 1007 for SFR & FNMA 216 for multi-units
- Refinance: Market rents or lease with cancelled checks for 2 months
- Minimum DSCR: 1.25X
- Experience Review: First time investor must own primary residence for 12 months & Max LTV 65%