Investor cash flow mortgage


Rental Income qualification loans Cypress Creek

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Advantages of personal loans

The flexibility of personal loans makes it one of the most ideal options to meet your financial commitment. It can be easily used to cover various kinds of financial needs such as home repair or improvement expenses, weddings, and other financial needs..... Read More

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Debt Service Coverage Ratio

A debt service coverage ratio mortgage is also called an investor cash flow mortgage which allows you to pay for an investment property with rental income, rather than your personal income. A debt service coverage ratio mortgage allows you to buy or refinance a rental property without the provision of tax returns, W-2s, pay stubs, or other financial proof needed for an ordinary mortgage. There is no requirement of employment or income proof, and the properties in the name of an LLC are also allowed.


Debt Service Coverage Ratio Requirements

  • Rental income produced by the property must be more than the lender’s coverage ratio requirement.
  • The coverage ratio must be equal to the monthly rental income divided by the payment. It generally varies from 1.0x to 1.5x, deciding on the factors.
  • Certain lenders may need a minimum down payment of 20%.
  • Rental survey and an appraisal is required. A rental survey is done to inform the lender of the rent generation of the property depending upon the rental comparables.

Debt Service Coverage Ratio Requirements:

  • The rental income generated by the property must meet or exceed the lender's coverage ratio requirement.
  • The coverage ratio equals monthly rental income divided by the mortgage payment and typically ranges from 1.0x to 1.5x, depending on the lender and borrower.
  • Some lenders requires a minimum 20% down payment.
  • An appraisal with rental survey is required. The rental survey tells the lender how much rent is to be expected based on rental comparables.

All About Mortgages and Loans

Managing debt service effectively

Debt service refers to the amount of money required to pay off interest and principal payments on a debt. This can include loans, bonds, mortgages, and other forms of debt.

Affordability is hindered to Buying

when prices are too high or when people's incomes are too low. In both cases, individuals and families may struggle to pay for basic necessities like food, housing, healthcare, and education.

Adjustable Rate Mortgage

Adjustable rate mortgages (ARMs) are a type of home loan where the interest rate fluctuates based on the prevailing market rates.

FHA mortgages are home loans

that are insured by the Federal Housing Administration (FHA). These loans are designed to make homeownership more accessible and affordable for individuals who might not qualify for conventional mortgages.

FHA mortgages are available

to a wide range of borrowers, including those with lower credit scores, lower down payment amounts, and higher debt-to-income ratios

What you Need to Know about a Mortgage

Before you attempt to get a home mortgage, it's important that you understand everything about it. This will help you prepare for and understand the process

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