No ratio DSCR means that the ratio of the monthly rental income of the rent to the monthly repayment amount of the house, tax, insurance and property management fee is equal to "0", that is, you can apply for DSCR loan products with "zero" ratio.
In our previous loan operations, we need to compare the rental income with the monthly PITIA and other liabilities of the subject property, to measure whether the loan products meet the regulations with DTI.
No ratio DSCR, a loan product that does not check the income, has no requirements for the income of the borrowers, since this loan product does not involve the calculation of DTI. And the minimum DSCR ratio can be as low as "0". Even if the rent of the house is low, we can still do it! Actually, the lender doesn't care what's the ratio is, as long as the subject property is an investment property.
This is a good choice for guests with low income or more liabilities.
Without considering DTI, we do not need to consider the insurance land tax of other REOs, nor do we need to check the borrowers' tax returns, which provides more convenient conditions for the rapid approval of loans. If you buy an investment house, choosing DSCR can help you quickly complete the house purchase transaction!
Post time: Jan-21-2022