This market has caused everyone to rethink their business plans. Tight inventory, an uncertain rate environment and — the talk of the town — buyer agent compensation, have all been factors for consideration. But notice these are all factors over which we have zero control. So, let’s take control where we can and utilize the tools and resources we have to find new avenues for business (or perhaps expand the ones we already have). 

One such avenue is investors, specifically those looking to develop a portfolio of income properties as an overall financial plan. As the real estate expert, you know owning real estate can be a fantastic piece of anyone’s financial portfolio.

While there are many ways income property can be financed, the one we will focus today on is called a debt-service coverage ratio (DSCR) loan. DSCR is a financial metric that provides much more flexibility during the qualifying process. Unlike more traditional mortgages that require us to verify a borrower’s income, this loan program allows us to qualify the borrower for the loan using only the DSCR, or the ratio of income generated from the property to the monthly housing expense.  

Here are the program highlights:

• Properties up to eight units are eligible (traditional financing is a maximum of four units)

• Loan amounts up to $2.5 million

• Very flexible credit scores

• Short-term rentals allowed (Airbnb, VRBO)

• Cash out up to $1 million

• No income or employment verification required

• We can lend in almost every state

Many potential investors are left out of the rental income market. But, with our DSCR program, they now have the opportunity to create wealth through real estate – and you and your team at Key Mortgage can make that a reality. As part of your real estate review process, you could easily incorporate this topic and have your Key Mortgage partner ready and available to help further the conversations. Reach out to a Key Mortgage loan officer today.