Real estate investors often face challenges when transitioning from short-term hard money loans to long-term rental financing. We specialize in DSCR loans for real estate investors.
Renovation-to-Rent Financing Scenario
Our borrower purchased a distressed single-family investment property just two months ago. Using a hard money loan, they covered both the purchase and renovation costs, but the loan carried a 6-month balloon payment.
Once the renovation was complete, they needed to refinance quickly to avoid the balloon deadline. With a 708 FICO score, the borrower also wanted to use the current appraised value of the property to meet loan-to-value (LTV) requirements. Conventional mortgage programs would have required a six-month waiting period, but our DSCR loan program was the ideal solution.
How the DSCR Loan Solved the Problem
With our non-QM DSCR loan, the borrower was able to:
- Refinance immediately after renovation, even though the property was purchased less than six months ago.
- Use the updated appraised value to maximize loan proceeds.
- Transition out of the hard money loan before the balloon payment came due.
- Secure long-term financing and stabilize cash flow with rental income.
This flexibility is exactly why DSCR loans are a powerful option for renovation-to-rent real estate investors.
DSCR Loan Program Highlights
- Maximum Loan Amount: $3.5 Million
- Minimum Loan Amount: $100,000
- Non-Warrantable Condos Allowed
- No Employment, Income, or DTI Analyzed
DSCR Loan for Rental Properties
- To refinance quickly after renovations.
- To scale their rental property portfolios without traditional income documentation.
- Creative mortgage solutions outside of conventional lending guidelines.
Whether you’re transitioning out of a hard money loan, purchasing a non-warrantable condo, or refinancing a recently renovated property, our DSCR loan program is the answer.
