Analyze your investment property - Know your landlord loan options
Many loans are underwritten based on DSCR- know you PITI (principle and interest, taxes and insurance) total payment and how measures against the income /rent of your subject property.
We have vaiouse loan programs starting with the best terms requiring 20-25% (1.2 - 1.25) DSCR or profit margin. Meaning , you divide rent/PITI and come up with ratio.
1000.00 month rent / 782.00 (PITI) , you would have 1.27 DSCR that would work most cases.
The payment was calculated at 7% , 80,000 for 30 years (typical of our alternative- portfolio type of loan)
So if you have cash flowing property there are more options,
A. 1.2 + is best
B. The 2nd level type loan is "just Positive cash flow" , so naturally there is more scrutiny towards borrower credit and income (it can still be stated income program)
C. "No Ratio" type loan- rents are not calculated - Borrowerer credit and property value are reviewed.
Send us your scenario now and now your rent and expenses for quicker road to closing.