The DSCR Guideline Most Investors Get Wrong

[Joyce Ann Magallanes]

A lot of investors still think DSCR loans require sourcing every large deposit, full seasoning on cash-out refinance, and a spotless rental history. That's not the case anymore, at least not universally.

Large deposits in your accounts? No sourcing required. Down payment, closing costs, reserves? Can all be covered with 100% gift funds. Cash-out refi? Only 3 months of title seasoning. First time buyer with no rental history? A rent free letter can work instead. And rental income gets calculated using whichever is higher, the 1007 or the actual lease.

620 FICO is the minimum FICO here.

Worth checking current guidelines before assuming a deal won't qualify. Send your scenario here. 

*Rates, LTV, and program terms are subject to change and vary based on borrower credit profile, property type, and market conditions. Not all applicants or properties will qualify. This is not a commitment to lend.