All Forum Posts by: Salvador Auciello

Here is what you can do a No Debt Ratio DSCR at 80% of purchase price. Or a DSCR with better rate at 75% of purchase price cash out.

I have seen first time investor No ratio DSCR at 80% LTV no income loan.

Hi @Varun C.  Like Givo, said how every I have seen 80% of purchase price plus rehab.  

From What I have seen 2nd homes you need to go to 85% LTV.

with regards to DSCR now we are talking 80% LTV

Here is my Experience on DSCR and while we are at it on No DSCR (debt ratio does not matter 0.00) program

1. first time buyer okay on No DSCR

2. Rural same 70% LTV on both DSCR and No DSCR

3. Foreign National can buy 1st time home no experience no USA credit

4. Don't care about experience

5. What a lender looks for is that can be a deal killer is if someone is trying to buy a primary home or refinance a primary home as a no income loan

6. Properties must be pride of ownership condition.  This is not for a fix and flip. 

7. Deferred maintenance I have seen lenders allow it under No DSCR however their risk is mitigated generally with high rates.

Hello Manny,

For no income to Qualify if you have 20% down best option is DSCR loan since it's based on what is called a debt service ratio.

Another Option is a variation that some lenders do is a No DSCR or another way of saying it is a no debt ratio loan a true no income verification on both you and the property.

3rd option for owner occupied loan there are lenders that do if you are Self Employed self generated Profit and Loss statement if you own a business.

4th option that I have seen lenders do is Verification of Employment only at only 15% down payment. 

All those programs don't carry PMI

@Breonna Mahana

Like most people already commented different lenders have different guide lines.  There are lenders that would use all the four jobs to help you qualify.

In addition there are even programs with some lenders where they account for the middle score of the highest earner. So for say If you husband make more then you do. His middle fico score can be used for interest pricing purpose but allow your income to enter the DTI calculation.

You should consider working with a Non Qm lender that is solution based and more flexible. 

You may want to consider a DSCR loan with so you don't have to worry about the DTI. Loans like these are based on the asset. However they tend to require more like 20% or more depending on the lender.

@Ned Carey the type of loan is common with Non-QM lenders.  It documents the income. 

Example borrower does XYZ business and he has a personal Each month they deposit an average of $10,000 per month for 12 months. That is $120,000 per year. If you average per month the borrower makes $10,000 of actual income that can be used towards the DTI calculation.

So it is not Stated it is documented.  You can consider it alternative doc program. There are many other types of alternative doc programs

Such as asset depletion.  Person has 1 Million dollars and does not work at all.  Asset depletion you take the 1 Million and depending on the lender

divided by 60 Months. that is about little more then $16,000 per month that can be used in a DTI calculation.

Pro...

you can use 12 month or 24 months depending on what would help you qualify. 

You don't need to show taxes 1040s.  It primarily for individuals that are self employed and if they used the taxes and have to many write offs they could still qualify.  Some lenders allow the use of 100% of the deposits while others if they are business bank statements they only let you use 50% of the deposits of the average of 12 or 24 months to come up with your monthly income. 

Cons.... You don't know how is the underwriter going to calculated it.  What income in the bank statement will be thrown out. 

this loan with most lenders it's for primary residence not for investment purpose. 

I agree with Erik DSCR is a better option for rental property.