By Andrew Augustyniak | People’s Mortgage
Investor Cash Flow No Doc aka DSCR Loan
Investors, this product is the solution to all your problems! If you are an investor with long-term rentals but have had trouble qualifying in the past, the investor cash flow loan is the minimum doc solution. The investor cash flow loan is specific to investors only. To better explain, see the below main characteristics helpful to know about this loan product:
- Purchase and Refinance Allowed
- No income documentation from any tax returns
- The loan is qualified simply off the ability for the rent to cover only 70% of the mortgage payment.
- Example = Mortgage payment of around $1,000 per month
- Rent for that property is $700 per month
- Property qualifies for the loan if the rent vs mortgage is at a minimum 70% ratio or greater
- We are also working to add another program that allows for even less than a 70% ratio of the mortgage payment
- Example = Mortgage payment of around $1,000 per month
- Loan to Value Maximums
- Purchase up to 80% loan to value
- Refinance loan values range from 70%, 75% to 80%, depending on the type of refinance
Borrower with No FICO Score Loan
If one or more borrowers do not have a credit score due to insufficient credit, the lender must establish an acceptable nontraditional credit profile. A nontraditional credit profile incorporates anything a borrower may make payments on monthly. An example of this would be monthly insurance, gym membership, phone bill, utilities, etc. The lender must first check all three major credit repositories to verify the borrower’s credit history and confirm that the borrower does not have a credit score.
If the borrower’s credit information is frozen at one of the credit repositories, and no credit score is available from any other repository, the lender may underwrite the borrower following the requirements for nontraditional credit. If the borrower’s credit information is frozen at two or more of the credit repositories, the loan is not eligible as nontraditional credit even though no credit score is available.
The credit report will indicate if a credit score could not be produced due to insufficient credit. Lenders must ensure that the credit report accurately reflects the borrower’s information, such as the name, Social Security number, and current residence of the borrower to confirm that the lack of traditional credit was not erroneously reported because incorrect information was used to order the credit report.
Note: For certain loan transactions, one or more borrowers are required to have traditional credit as evidenced by a credit score.
Always feel free to contact me directly with any questions!
ANDREW AUGUSTYNIAK Branch Manager/Loan Officer
Call or Text: 480.735.4095
aa@peoplesmortgage.com
aa.loans.peoplesmortgage.com
3303 S Lindsay Rd, Bldg. 2, Suite 104, Gilbert, AZ 85297
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LO Licensing: AZ LO-0921752 CA-DBO911628 OR WA-MLO-911628 NMLS-911628 Company Licensing: Peoples Mortgage Company, A DBA of Moria Development, Inc. AZ BK-0904164 California – FLL603L266 / RMLA4130661, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act: www.peoplesmortgage.com/privacy-policy OR-ML-5111 WA-CL-6274 NMLS-6274 |