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.

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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