DSCR Mortgage

The Loan Tree is New Jersey’s leading provider of DSCR Mortgages for the past 31+ years.

The Loan Tree Debt Service Coverage Ratio Mortgage, or DSCR is a No-Income Verification Mortgage.  Qualify for an investment property purchase or refinance loan without using your tax returns. As a real estate investor, you can avoid high rates and high points of private fix & flip loans, a lengthy approval processes and strict lending criteria with a DSCR Mortgage, which is a type of no-income loan. Qualify for a Mortgage based on your property’s cash flow, not your income.  Securing a DSCR Mortgage can help you expand your investment portfolio easier than ever before.

What Is a Debt Service Coverage Ratio or DSCR Mortgage?

A DSCR loan is a type of Non-Qualified Mortgage loan for real estate investors. Lenders use a DSCR to help qualify real estate investors for a loan because it can easily determine the borrower’s ability to repay without verifying income.

How is the DSCR Calculated?

DSCR is computed by taking the gross market rent (GMR) of the subject property as established by the appraiser and dividing that figure by the total mortgage payment (TMP) which includes the principal, interest, taxes and insurance.  So, the DSCR would be GMR divided by TMP which must equal a DSCR of .75 or higher to qualify.  The Loan Tree uses DSCR to analyze how much of a loan can be supported by the income coming from the property as well as to determine how much income coverage there will be at a specific loan amount.

How Does a DSCR Mortgage Work?

Because real estate investors write off expenses on their properties, some may not qualify for a conventional loan. The debt service coverage ratio loan allows these individuals to qualify more easily because they don’t require proof of income via tax returns or pay stubs that investors either don’t have or that don’t represent their true income due to write-offs and business deductions.

Benefits of The Loan Tree’s DSCR Mortgage: 3 Types Are Available

The Loan Tree offers 3 Tiers of DSCR Mortgages to fit virtually all lending scenarios.  Our best program is Tier 1 where the DSCR is 1.5 or higher.  We also offer a Tier 2 where the DSCR is between 1.00 – 1.49 and our Tier 3 where the DSCR is between .75 – .99.

DSCR Mortgage for real estate investors include:

  • Reduced documentation means quicker closing times
  • No income or job history verification required
  • No monthly PMI regardless of the loan to value
  • No limit on the number of properties
  • Loan amounts up to $5,000,000
  • Unlimited cash out
  • Loan to value as high as 85%
  • Minimum credit score of 640+ required
  • Interest-only loan options available with up to 40 years to pay
  • Suited for new and seasoned real estate investors
  • Both long-term and short-term rentals are eligible (Airbnb, VRBO, etc.)
  • Eligible borrowers include, LLC, Partnership, Corporation, Inter-Vivos Revocable Trust, Non-Permanent Resident Alien

The Loan Tree DSCR loan could be a perfect program to expand your investment real estate portfolio. Why not call or email us for additional information at 732-988-5000 x202 or akelly@theloantree.com. Or you can click here MORE INFORMATION and we will respond to your request as soon as possible.