No DSCR Ratio
New – April 2017 - No Ratio Loans offer real estate investors simplified financing options for taking advantage of the value of the property not by the DSCR of the property. So, it can be a vacation rental, high value SFR.
This is expected to be another record year for the US real estate market. In order to take full advantage of the opportunities investors need leverage. Interest rates may still be low, but many investors have been holding back due to fears of the hassles of applying for financing. Fortunately, a variety of new lending products are available in 2017, including streamlined loans with limited documentation requirements.
It pretty straight forward:
Up to 70% of value based upon an appraisal that we order and you pay for. Most areas of the USA. The property can be vacant or not support traditional DSCR or DTI requirements.
Pricing incentives are based on zip code, LTV, credit score(s), loan size, leased vs vacant, and term.
Rate range are 6.65 - 7.5%.
FIXED RATE TERMS with NO PROPERTY INCOME RATIOS
- 3/1 ARM – NO Balloon
- 5/1 ARM – NO Balloon
- 30 year fixed - Fully amortizing
All 30 year amortization
- PPP - 3 years - 80% of 6 months’ interest
- Upfront fee - Appraisal only
- Can use your own title company
- Close is about 3 weeks
- Funds into an LLC or personal name & have to be experienced investors
- Lender fees are 2.0 - 3.0% of loan amount (paid at closing)
- We do want to see 6 months PITI cash reserves in a back account.
EZ Qualifying Process – 3 week closing
- No W2s Required
- No tax returns Necessary
- No 4506s Ever
- 620 credit minimum
- Past bankruptcy OK – Greater than 2 years
- Past foreclosure OK – Greater than 2 years
- LTVs up to 70% of the value today
Loan Purposes
These No Ratio income and no ratio mortgages can be used for:
- Vacation rentals
- Single family properties (1-4 unit)
- New acquisitions
- Cash out refinances
- Multifamily properties
- Apartment buildings
Summary
No income ratio mortgages with stated income loans can be ideal for investors needing to close fast with vacant property, who want a streamlined closing process, and want to be confident when making offers on new purchases. Easier qualifying may now make it possible for more investors to obtain the fair leverage they have been searching for.
