Custom Mortgage offers a unique mortgage product called the Debt Service Coverage Ratio (DSCR) mortgage, designed for real estate investors with four or more rental units. This product aims to help borrowers expand their investment property portfolio by allowing them to purchase additional rental units without the need for personal income verification or prying into the borrower’s personal balance sheet.
The DSCR mortgage underwriting process prioritizes the rental income of the property to be purchased or refinanced, over the borrower’s personal income. The goal is for the rental property to earn enough income to cover the mortgage payment, and with the DSCR mortgage, borrowers can have a Debt Service Coverage Ratio of up to 1.25:1. This means that the property’s net operating income must exceed the mortgage payment by 25%.
Custom Mortgage’s DSCR mortgage offers investors a way to leverage their existing real estate investments to build their portfolio without relying solely on personal income. It is an excellent option for borrowers looking to invest in rental properties while minimizing their financial commitment and maximizing their return on investment.
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