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DSCR
MORTGAGE LOAN
DSCR Mortgage Loans for Self-Employed and W2 Borrowers
DSCR Mortgage Loan Programs for Self-Employed Borrowers - Rates Starting at 6.99% - 80% LTV
If you're a self-employed borrower seeking a mortgage loan for your investment property, you may feel overwhelmed by the typical mortgage financing process and consider alternatives.
A DSCR Nationwide Mortgage Loan is the perfect solution for borrowers who are entrepreneurs, self-employed, or on W2.
It is strongly advised that you engage with a seasoned private money mortgage lender if you want to apply for a loan that doesn't require proof of your income or assets. As the leading nationwide private money and NON-QM Mortgage Lender, Stratton Equities has pioneered the DSCR mortgage loan to our program library to provide more solutions for our borrowers.
Are you self-employed and are looking for a financing solution for your investment property? Apply Now and one of the DSCR mortgage loan officers will help you with your loan scenario.
What is a DSCR Mortgage Loan?
A DSCR Mortgage Loan, in contrast to conventional loans, does not require the borrowers to provide proof of their income; instead, these mortgage programs are based on the borrowers' credit histories, real estate investment expertise, and liquid assets, which are then processed through underwriting.
For a DSCR Mortgage Loan, only real estate investors and self-employed borrowers with credit scores above 620 are qualified. Due to their proven income, closing deadline, employment history, or other factors, borrowers who are unable to use a bank benefit from DSCR mortgage loans for commercial real estate or DSCR NO-DOC rental loan programs.
Like most term loans, a DSCR mortgage program features less regulation and higher rates than traditional loans, similar to no-income verification mortgage loans. Although dangerous, many real estate investors find it easier to decide because of the flexibility and speedy approval process for the borrower.
In contrast to conventional investment property loans, which have a maximum LTV of 70%, a DSCR Mortgage Loan has a maximum LTV of 80% while requiring no PMI. As a result, the borrower can make their purchase with a smaller down payment.
DSCR Mortgage Loan Summary
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Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse
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Rates Starting at 6.99%
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$100K – $5M
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Up to 80% LTV
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Blanket Loan Options Available
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Fixed rates/Adjustable
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5/1 ARM, 30-Year Fixed
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Interest Only Option Available
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Foreign Nationals Eligible
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No Prepayment Penalty Option Available
DSCR Mortgage Loan Programs for Nationwide Borrowers and Real Estate Entrepreneurs
A DSCR Mortgage Loan is a type of mortgage loan program for investment properties in which the borrower is not required to present proof of income. This is an ideal solution for self-employed borrowers, real estate entrepreneurs, and W2 investors looking for financing for their loan scenario.
These NON-QM (non-qualified mortgage) loans provide nationwide borrowers who couldn't meet full documentation loan programs with an alternative, in contrast to traditional loans. These lending solutions are used by our loan officer team at Stratton Equities for prospective borrowers and real estate investors since they make obtaining finance simpler.
Due to their irregular or undocumented income and the stricter lender paperwork requirements, borrowers may find it challenging to qualify for conventional mortgages.
Most lenders utilize bank statements (usually up to 2 years) to prove a borrower's income rather than tax filings and recent pay stubs like traditional mortgages. With bank statement loans, you still have to qualify for your DTI (debt-to-income ratio).
If you don't qualify with one lender, such as a bank or other form of conventional financing, because of their different underwriting standards and procedures for calculating net income, you probably will with another lender.
To obtain the loan amounts for their real estate investment properties, self-employed borrowers turn to private money loans as a financing option. As private money and NON-QM mortgage lenders, we are the solution for borrowers who have been turned away from traditional lending due to their employment status.
A DSCR Mortgage Loan can only be utilized for rental income-producing properties and not for owner-occupied or primary residences.
You'll receive a response from one of our top loan officers after submitting your loan scenario today.
Do You Qualify for a DSCR Mortgage Loan?
Here is a quick rundown of information to keep in mind when applying for this loan:
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A DSCR Mortgage Loan can be the best option for you as a borrower if you are self-employed, have an unpredictable income, and have money in the bank but your income varies.
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When engaging with a mortgage lender on a DSCR Mortgage Loan program, whether you are a prospective borrower or an experienced real estate investor, the approval procedure will be based on the value of the property.
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Your anticipated rental income can assist you in getting authorized when buying a house or commercial building as an investment property, even if you don't have any other proof of income or assets.
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A DSCR Mortgage Loan is the best option for real estate investors because it doesn't require any tax records or proof of income.
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The approval procedure moves quickly, which fits in well with the quick turnaround required for real estate investing.
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This type of mortgage loan program can be used on the following investment property types, including, Single-family, Condos, Townhomes, Multi-Family, Commercial, mixed-use, Office, Retail, Industrial, and Warehouse.
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Options include Fixed rate and Adjustable rate. It is perfect for real estate investors based outside of the United States because foreign nationals are also eligible.
The Benefits of DSCR Mortgage Loan Programs for Self-Employed and W2 Borrowers
Working with an asset-based loan or a no-income-verification mortgage program has many advantages. The following are the benefits and drawbacks of using a DSCR Mortgage Loan Program:
Working with DSCR Mortgage Loan Programs Has Its Benefits:
For self-employed borrowers and real estate entrepreneurs wishing to own investment properties, they offer more accessibility. For instance: If stringent documentation requirements prevented you from obtaining a conventional loan in the past, a private money mortgage lending program might be able to assist you in becoming eligible for a DSCR Mortgage Loan.
DSCR Mortgage Loans, like other asset-based lending programs, have a quick application procedure. In contrast to conventional mortgages, which typically have an underwriting process that takes several weeks to complete, these loan programs typically close between 21 to 35 days.
The Drawbacks of Using DSCR Mortgage Loan
Due to the rarity of these private money and NON-QM mortgage loan programs—few lenders provide loans with no documentation, no income verification, and no stated income—applying for them can be challenging. Finding a nationwide lender that provides DSCR Mortgage Loans for self-employed borrowers, like Stratton Equities, may therefore be challenging.