When it comes to financing multi-unit residential properties, LendSure Home Loans (“LendSure”) offers a flexible and innovative approach through its Debt-Service Coverage Ratio (“DSCR”) loan program.
Designed to simplify the process for investors and realtors, this program makes it easier to purchase, refinance, or cash out by focusing on property cash flow.
Simplified Qualification Process
Our DSCR loan program emphasizes a property’s ability to generate cash flow, making it easier for investors to qualify for financing without extensive documentation. Here’s what you need to know:
• No Tax Returns Needed: We qualify based solely on the cash flow of the property, with no other income documents required.
• DSCR Calculation: DSCR is calculated by dividing gross rents by PITIA (Principal, Interest, Taxes, Insurance, and Association fees). A DSCR over 1.0 indicates sufficient cash flow to cover loan payments; a DSCR below 1.0 signals a shortfall.
• Flexible Rental Income Verification: We verify rental income using the lower of gross rents from the lease agreement or values from either the Form 1007 Rent Survey or Form 216 Operating Income Statement for multi-unit properties. When applicable, we may also consider statements from property management firms or platforms like Airbnb.
• Up to Two Vacant Units Permitted: Up to two vacant units are permitted during the underwriting process. Income is based on 75% of market rents, minus management fees, providing flexibility for investors.
Key Program Highlights for 5-10 Unit Properties
• Maximum Loan Amount: Up to $2,000,000
• Cash-Out Options: Up to $500,000
• Loan-to-Value (LTV) Ratios:
• Up to 75% for Purchase
• Up to 75% for Rate & Term Refinances
• Up to 60% for Cash-Out Refinances
• Minimum CreditScore: 700
• Simultaneous Loan Closings: Close multiple loans at the same time
• No Limit on the Number of Properties Owned
Benefits for Savvy Investors
Traditional commercial lending programs often have stringent requirements based on gross rental income, which can create challenges during periods of vacancy. LendSure’s approach mitigates these obstacles by focusing on cash flow stability and allowing for a more flexible qualification process, including a DSCR ratio as low as 1.1 for 5–10-unit properties.
What Sets Our DSCR Loans Program Apart:
• Dedicated Support: Our experienced team is ready to assist throughout every step of the lending process, providing personalized service and quick funding.
• Interest-Only Payment Options: Take advantage of a 10-year interest-only period to maximize cash flow and improve qualifying potential.
• LendDSCR Calculator: With LendDSCR, you can get pre-qualified quickly, receive product recommendations, and get preliminary quotes on rates. Try it now!
Why Choose LendSure Home Loans?
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We’re redefining the mortgage experience one loan at a time. Thanks to our common-sense approach and dedicated lending team, we often say ‘yes’ to today’s homeowners and investors.
Ready to explore how LendSure Home Loans’ can help you finance your next property? Contact us today.
