Call Independent Lending 949.830.3151
Tailored to the Texas rental investor, Texas DSCR Loans are the perfect fit for growing your portfolio with a cash out or purchase. Income for approval is calculated using rental income or average rents in the surrounding market. Call us today for a quick phone call to learn more about this unique rental property loan program.
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Faster Closing Times
Unlimited Cash Out
No Personal Income Requirements
No Employment History Verification
LLC and Other Entities Allowed
Your Trusted Texas DSCR Specialist
Opening our doors in 2013, we have years of mortgage lending experience and we can provide a quick, smooth lending process for your next DSCR Loan in the great state of Texas. With over $500 million in fundings since 2013 and 5-Star service with competitive rates, we are know for successfully assisting rental owners with Texas DSCR loans. Contact us today to speak with one of our Texas licensed Mortgage Advisors.
- Faster Funding Times
- Purchase or Cash Out
- Flexible DSCR Solutions
- Short or Long-Term Rentals
- Vacant or Occupied Properties
- Full 30-year Terms with No Balloons
Texas
Texas is the most populous state in the South Central region of the U.S. It borders Louisiana, Arkansas, Oklahoma, New Mexico and an international border with Mexico while also having a coastline on the Gulf of Mexico. Covering almost 269,000 square miles and with more than 31 million residents, it’s the 2nd largest state by both area and population. The Lone Star State is fast growing and provides an attractive rental market with a high and stable ROI.
Debt Service Coverage Ratio Calculation Example
The following is an example of how the Underwriter might calculate a Texas DSCR loan
DSCR = Gross Rental Income / Monthly Debt
Subject Property: Texas Single Family Rental
Annual Gross Revenue: Property is renting for $2,550 per month with an annual gross revenue of $30,600
Operating Expenses: Principle, Interest, Taxes, Insurance and HOA add up to $1,950 per month with an annual operating expense of $23,400
Annual rent of $30,600 / Annual debt of $22,400 = 1.36
A DSCR of 1.36 indicates that the property generates over 36% more income than is needed to cover the debt service. A DSCR above 1.0 suggests that the property has strong cash flow position and should be able to comfortably handle the new loan.
Most Texas DSCR lenders require a DSCR of 1.0 or higher. With Independent Lending we can go lower with compensating factors. Call us at 1.800.315.0043 to learn more about qualifying for your Texas DSCR loan.
Common Texas DSCR Questions
A: Each month, the interest is added to your loan balance. You only repay the loan when you sell the house or when the loan becomes due (such as after you pass away).
A: The acronym DSCR stands for Debt Service Coverage Ratio. A DSCR loan is a Non-QM or Investor Cash Flow loan program used by Texas property investors allowing them to purchase or cash out of their rental property. This loan type focuses on the cash flow generated by the rental property rather than by the personal income of the borrower.
A: Yes, typically other DSCR providers require a credit score of 620+ however with compensating factors, we can go down to 575 scores.
A: Yes, the Underwriter will look at this scenario on a case by case basis. Typically if the subject property was recently remodeled or purchased an exception can be requested.
A: Yes, minimum down payment is usually 20% depending on other factors such as property type and credit score.
A: To begin the process of obtaining your Texas DSCR Loan you can call us direct at 949.216.3902 or toll free at 1.800.315.0043. You can also complete our Contact Form or fill out our secure one page Application Form.
How a Texas DSCR Loan Can Grow Your Portfolio
Texas real estate investors wanting to no longer use personal financials for loan approval, while having the protection of an LCC or other entity are taking advantage of the Texas DSCR program. DSCR loans are here to stay and offer flexible financing in terms of rental cash flow, competitive interest rates and repayment structures to help investors hit their mortgage financing target goals.
- Unlimited Property Portfolio
- Less Documentation Required
- Rental Property Focused Lending
- Flexible Common Sense Undwriting
- Rental Cash Flow Not Personal Income
- Quick and Streamlined Underwriting Approval
About Our Mortgage Lending and Service
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Recently Funded DSCR Loans
Contact Independent Lending
Call Toll Free: 1.800.315.0043 / Local: 949.830.3151 or click the Contact Us button to fill out our secure web form for a call back. At Independent Lending, we give every loan request the respect it deserves.
