The Pros of DSCR - No Income Loan

[Nicholas Covington]

Here are a few reasons I prefer this product over trying to qualify my clients conventional. 

1. No personal income requirements. We aren’t looking to see if you filed your tax returns and quite frankly you could make $1 a year and still qualify for this loan program. 

2. Reduced documentation requirements. This program is normally advertised as a “no doc” loan but that is simply not true. But since we don’t ask for paystubs, w2s, tax returns, sometimes bank statements… I just say it’s a “lite doc” program

3. No limit on the number you can have! Conventional will cap you at 10 financed properties and frankly if you have over 4 you will need a large amount of money in the bank to qualify. With a DSCR loan you can have as many as your want! You get a loan, and you get a loan, and this home gets a loan too! (Oprah joke)

4. Great product for first-time investors! Though with some limitations, a first-time investor is able to obtain a loan on their first rental property without having to have landlord experience. We are able to use rents right away to qualify for the mortgage with as little as 20% down. 

5. No DTI requirements, though this is kind of the same as no personal income requirements. This program is 99% based on the income of the asset, the property, so your personal debts are not of concern.