So, if you're watching this video, I'm gonna say one of two things is happening.
One you're intrigued.
You're thinking the thumbnail, or is there really no income verification
loans out there, or two you're running into a problem financing or
buying another investment property.
So those are the questions and answers we're gonna have for you today.
Because on this channel, The Rate Update with Dan Frio, I'm Dan Frio.
Our goal here is to educate and inform you guys everything, real estate, especially
when it comes to your financing options.
So what's happening recently is there's people trying to
buy investment properties.
But they were having a tough time.
Okay.
One of the things is because of the rent moratorium.
Some investors you yourself might be out there.
You don't qualify because you didn't collect as much rents last year, as
you should have, or you might have had some lower income because you were laid
off or had temporary jobs and so forth.
It doesn't really matter why.
So then it comes to play where, when we throw in those finances,
you just don't qualify anymore.
Okay.
Because we analyze the tax returns and the cash flow of the buildings, all your
other debt, your two years tax returns.
Wonder if I said, let's throw all that stuff away.
Let's throw it all away.
Let's make it this simple.
As long as the credit scores there and you have the down payment
and the property cash flows.
And I'll explain that to you here in one minute.
You should be able to qualify for this program.
It's unlimited on how many properties you can own and
truly the property stands alone.
Okay.
We don't need tax returns.
We don't need a whole bunch of other stuff.
Your other debts come into play only for the credit in your credit score.
So intrigued let's look into the program.
So let's break down this program.
What exactly is it?
Well, the program is called the DSCR.
It's called the Debt Service Coverage Ratio.
Right here.
Right?
So what it is, the program focuses on the property's cash flow.
So no other income documents are required.
And basically here's how it works.
The Debt Service Coverage Ratio is this, you take your gross rents from either.
Well, we usually use the appraisal and we'll do, part of the appraisal will
have a rental analysis on there is you take that and you divide it by the
principal, interest, taxes, insurance.
And if there's an association fee, so basically the entire
mortgage payment, right?
If that number comes out to be greater than one.
It means there is sufficient cash flow to cover the debt
servicing means you're good to go.
If it's under one, that means you don't have enough cash flow to do this program.
There are times where we can use 0.8 in this cash flow
analysis and still get you done.
But the biggest thing here is that your credit score is in line.
And again, you have the down payment money.
So the minimum DSCR, this ratio that's allowed is 0.8 for purchases.
And one for refinances, you can close multiple investment properties
at this single time, you can actually go up to 85% loan to value.
So 15% down, if you're looking to purchase a.
Okay.
If you're looking to do rate and cash out or rate and term to get
a better rate, you go to 75%.
You can also buy properties up to eight units.
So normally once the building goes over four units, it's
called a commercial property.
You can't get normal financing on it.
This program, you can go all the way up to an eight unit property.
Loan amounts up to 1.5 million and you can pull out cash up to half million dollars.
Here's some good news on this and where a lot of people get turned down with
normal programs and where you won't get turned down in this one, no limit
on the number of properties financed.
Usually it's 10 properties.
This one has no limit.
You can't do non-warrantable condos and condo tells are allowed up to 70% and you
can qualify in the interest only payments.
If you have excellent credit and you have your cash flows and everything else.
So there's ways to qualify with this in regards to, you know, if
that debt servicing piece is just a little bit lower than it needs be.
Okay.
So the one of the caveats people, or one of the complaints, people
were gonna say, Dan, here you go.
Here's that 40-year term.
Here's the adjustable rates and everything else, guys.
This is for an investment property.
Okay.
Normally when somebody has an investment property, they have
multiples and their credit is going to play a huge role in this.
How is the mortgage history on all the other properties?
That's a big point here, which your credit score.
Do you have the assets to do this?
If you do, they're saying, well, you're an investor.
You know what you're doing?
So you can buy a property 15% down using this program.
And again, the only thing that comes into play, I don't need
1, 2, 3 years of tax returns.
I don't need mortgage statements on every property that you have.
Don't need an Excel spreadsheet breaking down your profit
and losses on every property.
It's really simple.
We get an appraisal on the property with a rent schedule, as long as
that rent equals to or exceeds what your complete mortgage payment is.
You should be on your way.
So to find out more about this, please reach out to us.
We would love to help.
The best way to do that is call us at (844) 775-5626.
Or visit us at TheRateUpdate.com.
God bless.
Thanks so much for watching.
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