We specialize in Non-QM loans for borrowers who do not fit the conventional lending box. Specifically, we offer no-income-check investment property loans that let qualified investors use property cash flow instead of personal income or tax returns.
Scenario Overview
Jessica owns several frozen yogurt shops and has been looking for ways to expand her real estate portfolio. She already owns four investment properties, including two owned free and clear. Rather than sell those properties or refinance them with traditional first mortgages, Jessica wanted to establish home equity lines of credit on both. The HELOCs would allow her to access available equity while giving her the option to move quickly when future investment opportunities became available.
Jessica had several strengths as a borrower. However, her tax returns produced a 69% debt-to-income ratio. That made it difficult to qualify for traditional home equity financing, even though she had strong credit and valuable income-producing assets.
- A 764 credit score
- Four existing investment properties
- Two properties owned free and clear
- Established rental-property experience
- Considerable equity available
The Non-QM Solution: A DSCR HELOC
Jessica was an excellent candidate for our DSCR HELOC program. Instead of relying on her personal income and conventional debt-to-income ratio, the program evaluated the rental cash flow generated by the properties. A DSCR HELOC is a no-income-check financing option for eligible real estate investors. Qualification is based primarily on the property’s rental income and other loan-level requirements—not W-2 earnings, pay stubs or the taxable income reported on the borrower’s personal returns. By using the properties’ cash flow rather than Jessica’s personal income, we provided another path to qualification. She could access equity from her free-and-clear investment properties and use the available funds to pursue additional real estate purchases.
DSCR HELOC
- Credit lines from $25,000 to $3 million
- Maximum combined loan-to-value ratios of up to 75%
- Qualification based on investment-property cash flow
- No traditional personal-income calculation
- No conventional debt-to-income limitation
- Rental income determined using the lesser of the estimated market rent from Form 1007 or 1025 or the monthly rent shown on the existing lease
- Higher lease income may be considered when supported by three months of documented receipt
- Access to funds without replacing an existing low-rate first mortgage
- Revolving credit that can be reused for future investment opportunities
Program terms, documentation requirements, and availability can vary by property, borrower, and state.
No-Income-Check Loans
Conventional mortgage underwriting does not always reflect a real estate investor’s or business owner’s financial strength. Tax deductions, depreciation, and business expenses can reduce taxable income, creating a high debt-to-income ratio on paper. Non-QM financing offers other ways to evaluate a borrower. Depending on the program and transaction.
- Investment-property rental income
- Bank statement deposits
- A professionally prepared profit-and-loss statement
- Business cash flow
- Liquid assets
- Other alternative documentation
DSCR Financing
We specialize in a broad range of Non-QM loans for real estate investors, self-employed borrowers, and borrowers with complex income. If a DSCR HELOC is not the right fit, we can review other alternative-documentation and no-income-check mortgage options.
- DSCR purchase and refinance loans
- DSCR HELOCs
- Bank statement mortgages
- Profit-and-loss-only loans
- Asset-based qualification
- No-ratio investment property loans
- Cash-out refinancing
- Closed-end second mortgages
- Financing for experienced and first-time investors
Contact us to discuss our no-income-check loans, DSCR HELOCs, and other financing programs for real estate investors.
