Visionary Lenders

Investor DSCR / No Ratio Loans 

A DSCR / No Ratio Investor loan is a mortgage that uses rental income vs using a personal income verification to qualify. It's also known as a Real Estate Investor Mortgage. Tax returns are not required. Mortgage Insurance is not required. Loan amounts up to $3,000,000 dollars. 

DSCR /No Ratio loans offer several advantages. First, they are cash flow based on rental income. Flexible property types that include residential units, multi units up to 10 units, and mixed use properties. There is no employment verification required. Closings are typically faster based on the fact there is less documentation required 

It is possible to obtain a DSCR / No Ratio loan with a down payment as low as 20%. While conventional loans traditionally require more paperwork and require personal income and tax returns.  DSCR / No Ratio loans do not have mortgage insurance. 

To qualify for a DSCR / No Ratio loan, you generally need a good credit score (usually above 620). All borrower type are eligible including, US citizens, foreign nationals, and borrowers using LLC's and corporations. First time investors are okay and first time  buyers on a case by case basis. Specific requirements may vary, so it's essential to consult with a mortgage professional to determine your eligibility.

There are several options available to help cover closing costs with your DSCR / No Ratio loan:

  • Ask the seller for "seller concessions" to help pay your closing costs. You can negotiate this into your contract when buying the home. Let your real estate agent and mortgage professional know if you plan to ask for seller concessions. Keep in mind that feasibility may vary depending on the real estate market conditions.
  • Consider paying a higher mortgage interest rate in exchange for the lender's assistance covering your closing costs. This is commonly known as "buying up" your interest rate.
  • Non QM home loan programs allow gift money from family members, to help with closing costs. Let your mortgage professional know if you plan to use gift money for this purpose.

It is possible to obtain a Non-QM loan if you owe taxes, but it depends on several factors. First, it's important to understand the difference between owing taxes and having a tax lien. Owing taxes means you owe money to the IRS and/or a state, while a tax lien occurs when your unpaid taxes result in collection actions. Having an IRS lien on your income or assets can significantly decrease your chances of being approved for a conventional mortgage.

Communicate openly with your mortgage professional to guide you through the loan application process and help you explore potential solutions or alternatives.