Sick of All the Documentation Needed for a Conventional Loan??? Watch This!

Filed under: Investment Property

Today I want to talk about an option that is getting better – specifically for investment property purchases. A quick disclaimer: this strategy doesn’t work for primary residences or second homes. But if you are looking for an investment rental, then watch this video.

Debt Service Coverage Ratio Program for Investors

For investors who are looking for a quick, easy way to close on a purchase with as little as 20% down, we have a “debt service coverage ratio program.”

All we need is an appraisal that says what the market rent is. If that market rent number is at least as much as the mortgage payment (including taxes and insurance), then it’s a go.

It’s literally that simple. We do have to consider your credit score, but we can go as low as 660 on that.

Why Consider This Program?

A lot of investors, especially people with over 5 or 10 properties, have a hard time working through the documentation for each of the deals.

This is a great program for real estate investors. You don’t even need employment information on the application. We’re proactive about helping you get the financing that is needed, without the hassle of too much paperwork.

How Does It Work?

You’re probably wondering how it works. It is even legal? All the regulations in the industry are for primary residences and second homes. Investment properties are technically unregulated. So, you can still use creative types of financing.

We are seeing interest rates using this strategy that are fairly competitive. Certainly, they are not conventional rates. But when you consider the amount of time some of the investors are spending putting the package together, it works out to be a good deal.

If you are an investor and looking for other options, then talk to me. I’d also love to provide more details to real estate agents who are representing investors. This program is a great option! Reach out to me any time.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
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