Qualifying for a Mortgage when you do not show enough Rental Income on the Tax Return
Investors who do not show enough income on the Schedule E of their tax returns do have mortgage options. Our Investor Cash Flow Program allows real estate investors to purchase an investment property or refinance their investment property using just the monthly rental amount as stated on the lease.
Investors can Qualify based on their DSCR
Debt Service Coverage Ratio (DSCR) is a measurement of the cash flow available to pay current debt obligations. To qualify using DSCR, we simply need to verify that the monthly rent received meets or exceeds the mortgage payment on the property.
Debt Service Investor Cash Flow Program: Key Point
Minimum credit score of 620
Qualify just on the rental income as listed on the lease.
No other income or employment needs to be verified
Borrower qualifies only on DSCR
No tax returns needed
No tax transcripts needed
No Debt to Income Ratio calculation
At least one borrower must have a 12 month history of managing rental properties
Gifts allowed for down payment
1-4 unit and condos allowed
Refinance with cash out can be done right after purchase - no seasoning requirement
Cash out up to 75% of the appraisal value
Can close in the name of an LLC