No-Ratio DSCR Loans: 75% LTV for STR and MTR
No-ratio DSCR loans at up to 75% LTV fund midterm and short-term rentals when market rents cap leverage — how this differs from standard DSCR underwriting.
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Video transcript
Lightly edited for clarity.
I saw a post on BiggerPockets and I figured I would answer the question here. Some of you investors go out and get midterm rentals, or even short-term rentals, that rent a lot higher than market rents. Now, some lenders use those market rents to cap your leverage. So, in cases where say the rental income is 2,500 for the market, but you're getting 4,000, you're going to be capped off that market rent by most lenders.
We have a no ratio program where you can go as high as 75 LTV, and we don't care what the DSCR ratio is. If there's a lease, you'll provide it, but if there's no lease, that doesn't matter.
The no ratio programs are a little more expensive as far as rate goes, because the risk is higher — because on paper the property doesn't debt service — but we'll still fund it. 75 LTV. Give us a call.