New investors can now access DSCR loans, and brokers get a special rate reduction this fall
A&D Mortgage is expanding its Debt Service Coverage Ratio (DSCR) loan program to include first-time homebuyers, offering US residents and foreign nationals the opportunity to invest in real estate with fewer traditional income verification hurdles.
Individuals buying their first investment property can qualify for a DSCR loan based on the rental income potential of the property, rather than relying on conventional income documentation, the non-QM lender said.
This expansion broadens the reach of DSCR loans, which were previously reserved for experienced investors, and now include those entering the market for the first time.
Borrowers must meet key requirements, such as a minimum credit score of 660 for US residents and no credit score requirement for foreign nationals. The maximum loan amount is set at $1 million, with loan-to-value (LTV) ratios capped at 70% for US residents and 65% for foreign nationals.
Additionally, buyers must have a minimum of six months in reserves for US residents, and 12 months for foreign nationals. A qualifying DSCR of at least 0.75 is required, meaning that the rental income must cover at least 75% of the property’s debt payments.
“Our goal is to give new investors access to loan products that allow them to build their investment portfolios from the start,” A&D Mortgage CEO Max Slyusarchuk said in a Press release. “With rental income as a qualifying factor, first-time homebuyers can now take advantage of opportunities previously reserved for seasoned investors.”
Fall promo for brokers
In addition to expanding its DSCR program, A&D Mortgage is offering a limited-time “Fall Into Savings” promotion for mortgage brokers, providing a .250 pricing reduction on its Super Prime and DSCR rate-and-term refinance loans. This promotion is available for loans locked between October 9 and October 31.
To qualify for the promotion, Super Prime loans must have a minimum credit score of 700 and an LTV of up to 75%. Similarly, DSCR loans require a credit score of 700 or higher, with an LTV also capped at 75% and a DSCR of at least 0.75.
Read next: What is the outlook for mortgage refinancing?
“This October, we want to allow mortgage brokers to offer their clients even better rates and make refinancing more accessible," said Slyusarchuk. “With this pricing reduction, brokers can attract more clients and help them take advantage of our superior lending solutions.”
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