Lender · San Clemente, CA · Member since 2017 · 77 posts · 35 votes
Maybe everyone knows about this program; it's called DSCR which stands for Debt Service Coverage Ratio. So, depending on what your cash flow is, qualifying is based on what your RENTAL income vs. debt service is. Even if you are operating at a loss you might be able to still get financing. This is as close to Stated Income as you can find. Even if your property is vacant you might qualify. This just works for 1-4 units. Criteria is based on fico scores and LTV. Maximum LTV is usually 85%.
@Jack Martin Great to know these products are being funded in our current lending environment. I will need to research these lenders more deeply come my future deals as I am reaching the threshold of lendability for traditional mortgage products.