Dear Friends,
Below we have outlined a few simple steps that you can take to help pave the way for fast and efficient funding on your next purchase or refinance with a DSCR loan.
Take 2 minutes to review this list and save yourself time and frustration later!
Here we go!
Get Your Entity Documents In Order!
Why does it matter?
Having your entity documents in order speeds up the lending process !
What you need to succeed with lenders
Entity is current and in good standing
Required Documents
Operating Agreement
Formation docs / Articles of Organization
Tax ID / EIN
Clear entity Structure and break down of ownership.
(Purchase) Have A Clear Trail For Liquidity!
What is considered liquidity
Cash in your account, checking or savings, personal or business account.
Money market accounts, liquid assets.
Retirement accounts, stocks, HELOC are credited at 50%.
What you need to succeed with lenders
2 months bank statements with proof of liquidity.
Clear paper trail of where the down payment is coming from.
Liquidity must come from a signor who holds at least 25% ownership of the entity.
(Refinance) Rental Agreement and Evidence of Income.
Why does it matter?
DSCR loans are qualified using rental income. If you have a tenant in place, but no lease or an unclear paper trail for monthly rental income deposits, you might be limited to the appraisers estimate of market rent.
What you need to succeed with lenders
Executed lease agreement.
Bank statements that show consistent evidence of the rental income deposits.
Vacancy is OK. When a property is vacant, the loan is qualified using 90% of market rent.
Here to be a resource for you!
