DSCR Non-QM: No Ratio - No minimum DSCR. A Smart Way to Finance Your Real Estate Portfolio.

JMAC specializes in DSCR Non-QM for investment properties SUCH AS AIRBNBs

LOANS to $3.5M for DSCR >= 1.0    LOANS TO $3M for DSCR < 1.0

• NO RATIO! (NO minimum DSCR) Limited restrictions.

• No income and no job required

• Condo Hotels

• Airbnb Rentals

• Foreign Nationals

• Transfer appraisals accepted

• Gift funds allowed after 10% from borrowers own funds

• Only 30-days of assets docs. for closing funds and reserves

• First-time investors: Up to 75% LTV

• Cash out can be used to meet reserve requirements

• Texas cash-out is allowed

• Only one appraisal required up to $2M

• Closed in Company Name

• 30- and 40-Year Fixed, SOFR ARMS 5/6 & 7/6 with Interest-Only options

• Purchase up to 80% LTV and cash-out up to 75% LTV

• 6-months title seasoning for cash-out

Investment DSCR Loans Now Accepted from LOs Unlicensed in Some States

JMAC Lending accepts Investment DSCR Non-QM loans in certain states where the Loan Officer is not licensed do business, including CO, CT, DC, DE, FL, GA, IL, IN, KY, MD, MA, NH, NM, OH, PA, RI, SC, TN, TX and WA. This is only offered for Wholesale lending. In FL and GA the loan must close in a Corporation or LLC.

Build Wealth with Property Investor Loans

Buying an investment property allows you to generate income through the renting or resale of a property that isn't your primary residence. To help make the buying process easier, JMAC Lending developed a Non-QM Cash-Flow Loan, a product that uses Debt Service Coverage Ratio (DSCR).

JMAC Lending Regional Sales Manager Bob Bordenet says DSCR loans are key for investors when analyzing real estate investment opportunities.

“DSCR loans do not require borrowers to qualify on their income but rather on the rent forecasts on the subject property,” he says.

“It is a way to buy an investment property based on the merit of the rental rather than the buyer. It’s a smart investment product.”

What is DSCR and how is it calculated?

DSCR is the ratio of Net Operating Income (NOI) to Debt Service (the mortgage payments).

As an example, the borrower has an investment property in mind that has a monthly lease income of $4,000 and a monthly PITI debt of $3,200. The DSCR in this example is 1.25. This means the property generates 25 percent more income than is needed to pay the debt obligation, therefore generating positive cash flow. This valuation provides the lender with a quick tool to break down the borrower’s ability to sustain and pay off the debt obligation on a real estate investment.

“What is so great about our DSCR product is that it offers no minimum DSCR, with some restrictions,” Bordenet says. “Most lenders require a minimum DSCR of 1.0. JMAC’s DSCR has no ratio as long as the loan amount is $150 or greater.

What is the appeal of a DSCR loan?

One of the big benefits of a DSCR loan is that a personal income calculation or employment is not required. The lender is interested in the cash flow the subject property is calculated to generate. JMAC Lending’s Non-QM DSCR features:

• No income verification – qualify on subject property income

• No employment required

• No leases are required to be listed

• No lease required if not rented

JMAC’s Non-QM DSCR offers a lot of benefits in today’s aggressive housing market.

“Without the income verification and job history check, this loan can lead to a quicker close,” Bordenet says. “Because investment properties can bring bidding wars in today’s hot market, the ability to close the loan quickly and smoothly is extremely valuable.”

Here are a few additional benefits of the DSCR Non-QM Loan:

• Transfer appraisals accepted

• Gift funds allowed after 10% from the borrower’s own funds

• Only 30-days of assets docs. for closing funds and reserves

• First-time investors: Up to 75% LTV

• Cash out can be used to meet reserve requirements

• Texas cash-out is allowed

• Closed in LLC

• 30- and 40-year fixed, SOFR ARMs 5/6 & 7/6 with Interest-Only options

• Purchase up to 80% LTV and cash-out up to 75% LTV

• SFR, condo, 2-4 units and short-term rentals

• Non-warrantable condos

Learn More from our DSCR Experts

For more information on the DSCR program, please submit the form above or email sales@jmaclending.com.