how to apply for a dscr loan

Collateral: Must be a “turn-key” residence (single family, duplex, 3-4 family, or condo) with no necessary repairs to be liveable

Credit: Credit score must be over 620 (700 for decent terms) with at least 3 tradelines over 1 year old in your credit history

Capital: Must have assets to cover 20% down payment, plus closing costs (typically between $6-10k) plus 6 months of “reserves” – extra savings to cover 6 months of the expected loan payment (For Refinances: We can typically roll closing costs into the loan as long as we are under the maximum Loan-To-Value(75-80%), so in many cases you don’t need any cash to close, but you do still typically need to show reserves)

Capacity: DSCR Ratio must be over 1.0 (Calculation: Fair Market Rent divided by Full Mortgage Payment) 

DSCR EXAMPLE: 

Fair Market Rent $2,000

Mortgage Payment $1,500

Escrow for Tax and Insurance (added to mortgage payment) $350

$2,000/($1,500 + $350) = 1.08 DSCR Ratio

FEES:

Collected UpFront:

$113 Credit Report Fee 

$735 Appraisal Fee

Collected at Closing:

Broker Fee – 1% of loan amount with a minimum of $2,000

Lender Fees – Vary, but typically between $1,500 and $2,500

Title Fees – You can pick your title company, and fees do vary, but typically between $1,500 and $2,500

PrePaid Taxes and Insurance – Varies WIDELY based on Insurance, Taxes, and prepaid interest based on closing date, can be as low as $2,000 or higher than $10,000 for high value properties. 

If you are ready to apply for a DSCR Loan, follow the instructions below:

Click here to fill out the application. 

Application Instructions For DSCR Loans:

Leave the employment and income questions blank, I do not need that info. 

For Assets: I just need 1 bank account showing enough money for the closing costs/down payment (if applicable), plus an additional 6 months worth of loan payments in reserves. 

For properties you own: Please be thorough here, some of my lenders require this info. And include your primary residence!

The last question will be Are you applying for a "Business Purpose" DSCR or Hard Money loan? PLEASE SAY YES TO THIS QUESTION, this will trigger the system to ask for the correct documents. 

After you finish the application, it will ask you to upload documents, and e-sign some disclosures. Please do your best to complete all of that to help me start on your loan with as much info as possible. 

One of the forms will be a Credit Card Authorization: This is because I charge up front to pull your credit, in order to keep my costs low as a small business. The cost is $112.92, and the credit report is good for 3 months, and we can use the same credit pull for as many transactions as we can close in that timeframe. 

Once all of this is completed, I will run your credit, shop your deal, and send you some scenarios for your loan.

Thank you for your business!