If you are an experienced real estate investor looking to purchase a condominium for short-term rental purposes like Airbnb or VBRO then our DSCR Loans is the only answer.
In a recent scenario, a real estate investor with a FICO score of 751 is eyeing a condominium with a purchase price of $545,000 and an LTV of 75%. The condominium has a high investor concentration of 85% and offers front desk check-in and cleaning services, making it an ideal choice for short-term rentals.
Our DSCR product is the perfect non-QM solution for this scenario. With our DSCR Loans, investors can benefit from unlimited investor concentration and the acceptance of front desk check-in and cleaning services for short-term rentals. What sets our product apart is that borrowers can qualify without the traditional analysis of their employment, personal income, or debt-to-income ratio. Instead, qualification is based on the debt service coverage ratio (DSCR), with a minimum DSCR of 1.00 and a 75% LTV.
Calculating the DSCR using short-term rental income is simple with our formula
Debt-Service Coverage Ratio = Average Monthly Gross Income * 80 / Proposed [P]ITIA
To determine the average monthly gross income, take the lower of the 12-month average of short-term rental income or the market rent from FNMA Appraisal Form 1007 or Form 1025.
With our DSCR Loans, real estate investors can unlock new opportunities and streamline the path to investment properties. Contact us to learn more about DSCR loans and it can help finance your rel estate portfolio.
