Closed Loan in Ft. Lauderdale, FL
Property Type: 2-4 Family
Purpose: Purchase
Loan Amount: $735,000
LTV: 75%
Product: 5-Year ARM
Interest Rate: 6.375%
Loan Program: DSCR
A DSCR loans is a non-owner-occupied mortgage solution that makes it possible for borrowers to obtain financing for 1-4-unit properties without having to produce income documentation or tax returns.
Instead of underwriting the loan based on the borrower’s personal credit, lenders review the property’s ability to generate enough monthly cashflow to cover the debt.
In other words, the standard Debt to Income (DTI) test is replaced with a Debt Service Coverage Ratio (DSCR) calculation.
In this deal, the borrower was looking to purchase a duplex property in Ft. Lauderdale, Florida.
Thanks to Silver Hill Capital, they were able to secure a competitive interest rate and a high LTV without paying Lender fees or providing the amount of documentation a traditional lender might have required.
