How To Use Rent Income To Purchase Property…

Good Morning!

Here’s how you can use the rent from a rental property as THE ONLY income you need to purchase a rental property…

The program is called Investor Debt Service Coverage.

Here’s how it works…

Qualifications are based on new proposed mortgage payment of the subject property be a 1:1 ratio when compared to the lower of either:

DSC Debt Service Coverage calculation of gross rents

-OR-

Rent schedule from the Rental Addendum on 1007 Appraisal Report

Min FICO:  620

Minimum Loan amount $75K – $5 Million

1-4, Units, Warrantable and Non-Warrantable Condos

Investor/Business use only

Reserves: 3-12 months (based on LTV).  If Bwr owns other investment properties with mortgages the reserve requirement is increased by 1% of total mortgage balance outstanding.

Purchase, Rate and Term Max LTV of 80%

Cash out available Max LTV of 80%

Cash out proceeds can be used to meet reserve requirements

Gift funds permitted.  Bwr to provide 5% of funds

Gifts of Equity permitted at a 75% Max LTV and Bwr to provide 5% of funds

US Citizens, Permanent Resident Aliens Max LTV of 80%

Foreign Nationals Max LTV 70%.  No FICO qualifies for immediate financing