- Two most recent years tax returns with all schedules. And extension for the most recent year if applicable
- Two most recent year’s W-2s
- Two most recent paystub’s covering 30 day period
- Two most recent months personal bnk statements where you have a little bit of money. (Where is the down payment coming from)
- ID copy (may be texted if you wish to do so)
Help Me Calculate My Payment
DSCR(residential and commercial)
- Rental Property Investment(Residential and commercial)
- Fix and Flip
- Hard Money
Construction(ground up and rehab)
- SBA Loans (For business owners)
- Bank Statement
We have programs for W2 wage earners, Self Employed, and Investors borrowers both residential and commercial.
W2 Wage Earners
The most common type of loan is for wage earners. These loans can be FHA, VA, Or Conventional. FHA/VA borrowers typically receive the most leniency when it comes to down payment, credit, and debt ratios. Credit score requirement for FHA borrowers start at 580 and go up. Housing expense ratios for these borrowers can go as high as 55% in most cases. In this example, a wage earner with a credit score of 580 and a monthly salary of $10K can have total monthly debt including their housing as high as $5,500.00. A typical down payment for this borrower would be 3.5-5% Or 22,750-32,500 on a 650K Home.
A conventional Wage earner can get a home loan with as little as 3% and as much as 20% down payment. These loans will require a credit score of at least 620 or better and a housing ratio of no more than 43-45% Using this example a Wage earner with a credit of 680 and monthly salary of $10K can have total monthly debt as high as 4300-4500.00 including housing. As stated, A typical down payment for this borrower would be 3%-20% Or 19,500-130,000 on a 650,000.00 home.
For self Employed/Business owner borrowers (Entertainers, Doctors, Lawyer’s Etc) we can use a conventional loan product or a bank statement loan product. Credit scores will typically need to be 640+. Bank statement loans will sometimes have higher rates but still allow the borrower to achieve their goal of purchasing or refinancing a home.
Our Investors loans can also be obtained through conventional methods & we have other loan products like DSCR that will allow for us to focus solely on the property and not the borrower. This is great for rental property investors, Fix and Flip, and commercial investors.
How it Works
DSCR stands for Debt Service coverage Ratio. This product is based solely on the income of the property. Credit score requirement is 680+ but nothing else is factored . Only the income of the property. For example, Assume a rental property worth 650,000 with a rental income of 4000.00 per month. The annual taxes and expenses are roughly 25% of the monthly income. Let’s also assume that the loan on this property is 5.25% with a monthly payment of 2900.00 Total monthly out go for this property is 3900.00 most DSCR products require a ratio factor of 1 of better. The ratio measures the income to expenses. See Below.
In this scenario this property would qualify for financing. Depending on your level of experience we have lenders that will allow for as little as 15% down payment. On a 650K home that is roughly 97,500.00 These loans also typically have an interest only option which would provide for better cash flow.
Monthly Expense= DSCR
4000 /3900 = this DSC ratio is 1.02