Rental Property Loan Rate and Fee Quote

Financing your first rental property can be fairly easy, but income becomes an issue for many would-be investors when trying to finance the second, third, and fourth rental properties.

It often becomes increasingly difficult to finance multiple rental properties for fledgling real estate investors because the traditional underwriting method of calculating your debt-to-income ratio gets in the way.

The traditional method of calculating rental income involves an evaluation of tax returns – with a couple of exceptions. Tax returns often cause income issues when there is an insufficient history of rental income and/or the rental property owners take full advantage of the tax write-offs afford them through rental properties. Tax returns might also reveal income anomalies, not related to the rental properties, that introduce additional debt-to-income ratio problems.

This is where the Debt-Service Coverage Ratio method of qualifying rental income saves the day.

The Debt-Service Coverage Ratio (DSCR) method of calculating income focuses on the prospective property’s rental income relative to the new loan payment. In other words, the DSCR method is only concerned with making sure that the rental income covers the loan payment.

The best part about DSCR method is that it does not involve tax returns or lease agreements; the qualifying rental income is determined by what the comparable market rents are going for in the area.

In summary: The DSCR method qualifies you based on the prospective monthly income of the rental property you plan to purchase, and this is accomplished by using the market rents in the area instead of tax returns and lease agreements. You qualify if the rental income covers the mortgage payment, taxes, and insurance.

Up to 20 properties can be financed with loan amounts of up to 2million. The program is eligible for both short and long-term rental properties.

Use the quick form on this page to get a custom quote that is totally anonymous. The quote includes closing fee estimates, interest rate options, and monthly payments. No personal information needed. No talking to a mortgage salesperson. Just the facts and figures.

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