Who Should Apply?
- Existing Homeowners
- Cryptocurrency Borrowers
How Do Cashflow Loans Work?
We want to calculate the DSCR to determine the ability to borrow and pay off the loan as the rental property generates income. Let’s say the property indicates that net operating income will be $300,000 per year, and the lender notes that debt service will be $100,000 per year. The DSCR is calculated as 3.00x, which should mean the borrower can cover their debt service more than three times given their operating income.
Criteria for Cashflow Loans
- Loan amount between $150,000 and $5,000,000. (1)
- Financing for up to 8 Units.
- Must be a non-owner-occupied property.
- Must have a credit score of 660 or above.
- No debt-to-income (DTI) or employment verification is required.
- DSCR must be greater than or equal to 1. (The gross rent must be greater than the mortgage payment including principal, interest, taxes, insurance, and any property association fees.)
- The borrower must have a history of owning and managing at least one property for a minimum of 12 months within the most recent 36 months on DSCR products.
- First-time investor ineligible on some Cashflow products.
(1) Maximum loan amount exceptions on a case-by-case basis. Additional criteria may apply.
Why is the Cashflow (DSCR) ratio important?
The debt service coverage ratio is important because it provides valuable information to lenders concerning a borrower's ability to sustain and pay off debts for a commercial or multifamily property. In other words, it's important to know because it helps lenders learn if their borrowers can successfully generate enough cash flow to cover their loan payments.